Which of the Following Is NOT Usually True About Employee

question 4

Multiple Choice

Which of the following is NOT usually true about employee stock options?

• A) There is a vesting period
• B) They can be sold to other employees
• C) They are often at-the-money when issued
• D) Their value is currently a charge to the income statement

---

Definitions:

Double or Nothing

A gamble or risk in which a person has the chance to either double their money or lose it all.

Coin Flip

A simple randomness procedure involving flipping a coin to decide between two outcomes based on heads or tails.

Expected Value

The weighted average of all possible outcomes of a random variable, considering the probabilities of each outcome.

Stock Market

A public market for buying, selling, and trading stocks, which represent ownership shares in companies.