Aharon Exercises 10 Stock Options Awarded Several Years Ago

question 84

Multiple Choice

Aharon exercises 10 stock options awarded several years ago. The following information pertains to the options: (1) each option gives the employee the right to buy 10 shares, (2) the market price on the grant date was $7, (3) the strike price is $10, and (4) the market price on the exercise date was $15. How much will it cost Aharon to purchase the options on the exercise date?

• A)$90
• B)$500
• C)$700
• D)$1,000

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Definitions:

Antisocial Personality Disorder

A mental health condition characterized by a long-term pattern of manipulating, exploiting, or violating the rights of others.

Low Levels

A condition or state where there is a minimal amount or intensity of a particular substance, quality, or activity.

Anxiety

Anxiety is a psychological and physiological state characterized by cognitive, somatic, emotional, and behavioral components, leading to worry, discomfort, and fear about perceived threats.

Generalized Anxiety Disorder

A mental health disorder characterized by persistent and excessive worry about various aspects of life, beyond what might be expected from daily stresses.