Bad Brad Received 20 NQOs (Each Option Gives Him the Right

question 62

Multiple Choice

Bad Brad received 20 NQOs (each option gives him the right to purchase 30 shares of stock for $10 per share) from his employer. At the time he started working, the stock price was $11 per share. Now that the share price is $25 per share, he intends to exercise all of the options. Two years later Bad Brad sells the stock for $27 per share. What is Bad Brad's basis in his stock for purposes of calculating the gain or loss?

• A) $6,000.
• B) $9,000.
• C) $15,000.
• D) $16,200.

---

Definitions:

Afferent Areas

Regions of the brain or nervous system that receive sensory input from the body, transmitting it to the brain for interpretation.

Efferent Areas

Regions of the nervous system responsible for sending signals from the brain to the body to initiate action or movement.

Tomographs

Imaging devices or techniques that create detailed cross-sectional images of the body or structures within it, through processes like X-ray tomography.

Sonographs

Visual representations of sound waves or other acoustic properties, often used in medical imaging and diagnostics.