When an Employee Stock Option Is Exercised,which of the Following

question 17

Multiple Choice

When an employee stock option is exercised,which of the following is usually true?

• A) The employee pays the market price for the shares and the company refunds the difference between the market price and the strike price
• B) The company or the company's agent buys stock in the market for the employee
• C) The company issues more shares and sells them to the employee for the strike price
• D) The employee cannot immediately sell the shares

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Definitions:

Dynamic Systems Theory

A theory that addresses how new, complex systems of behavior develop from the interaction of less complex parts.

Complex Systems

Systems composed of many components which may interact with each other in multiple ways, leading to emergent behavior that cannot be predicted from the behavior of the individual components.

Interaction

The reciprocal action or influence between entities, objects, or individuals, highlighting how they affect each other.

Information-Processing Theorists

Scholars who study how human beings process information, including the ways in which they perceive, analyze, manipulate, store, and retrieve information.