Lloyd Is the CFO for a Firm That Uses ISOs

question 42

Multiple Choice

Lloyd is the CFO for a firm that uses ISOs as part of its executive compensation plan.He receives annually $150,000 semi-monthly in base salary plus 25 shares of the firm's stock per month.The stock is omitted from gross pay calculations and is valued at $52.50 per share and he may exercise his option within five years at $0.10 per share.What is Lloyd's gross pay for mid-October?

• A) $7,250
• B) $6,250
• C) $7,560
• D) $8,250

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Definitions:

Generalization Task

A task designed to assess the extent to which learned behavior is displayed in response to stimuli that are similar, but not identical, to the stimulus present during training.

Resurgence

The conditioned stimulus (CS) eliciting a conditioned response (CR) in a new context after extinction in conditioning context.

Occasion Setting

The process by which a stimulus signals the appropriate context for a certain response or behavior to occur.

Orbital Frontal Cortex

A region of the frontal lobes of the brain involved in the cognitive processing of decision-making and emotion regulation.