Which One of the Following Statements Regarding Employee Stock Options

question 27

Multiple Choice

Which one of the following statements regarding employee stock options (ESOs) is correct?

• A) ESOs grant an employee the right to buy a fixed number of shares of company stock at the market price.
• B) Employees must exercise their ESOs prior to those ESOs becoming vested.
• C) Employees may forfeit their ESOs if they terminate their employment with the issuing firm.
• D) If a firm issues ESOs it must make them available to all employees.
• E) Employees can sell their ESOs if they do not want to personally exercise them.

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Definitions:

Psychoanalytic Therapists

Mental health professionals who use methods derived from psychoanalysis, focusing on uncovering unconscious motivations and early childhood influences on behavior.

Behavioral Therapists

Professionals who use principles of learning and behavior modification to treat psychological disorders and modify problematic behaviors.

Antisocial Personality Disorder

A mental health condition where an individual consistently shows no regard for right and wrong and ignores the rights and feelings of others.

Criminal Activity

Acts that violate legal statutes and are punishable by the authorities.