A Stock Option Is a Right to Buy

question 40

Multiple Choice

A stock option is a right to buy

• A) shares of the company's stock at the stock's current price.
• B) shares of the company's stock at half the stock's current price.
• C) shares of the company's stock at a predetermined price at some point in the future.
• D) bonds issued by the company.
• E) none of these choices.

---

Definitions:

Smooth ER

The smooth endoplasmic reticulum is a membrane-enclosed organelle found in eukaryotic cells, involved in lipid synthesis, detoxification, and calcium ion storage.

Phospholipids

A type of lipid molecule that forms the primary component of all cell membranes, consisting of two fatty acids and a phosphate group attached to glycerol.

Cell Membranes

Cell membranes are thin, flexible barriers that surround cells, regulating the passage of substances in and out of the cell, and providing structural support.

Vacuoles

Membrane-bound organelles in cells, particularly plant cells, which are involved in storage and maintenance of cellular homeostasis.