In 2017,a Company Employee Received an Option to Purchase the Company's

question 43

Multiple Choice

In 2017,a company employee received an option to purchase the company's stock at $45 per share.If the stock is trading at $40 a share in 2019,the employee will most likely

• A) exercise the option,receiving a gain of $5.
• B) exercise the option,receiving a gain of $40.
• C) not bother to exercise the options.
• D) buy the stock at $45 per share.
• E) sell the shares to a third party slightly above the market price.

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Definitions:

Attachment Theory

A psychological model that describes the dynamics of long-term and short-term interpersonal relationships between humans, particularly focusing on how parent-child relationships influence development.

Theorist

An individual who formulates, describes, and explains theories, especially in a given field.

Goodness Of Fit

The compatibility between a child’s temperament and their environment, especially the parent’s temperament and child-rearing methods; the greater the degree of match, the more favorable the child’s adjustment.

Temperament

An individual's inherent personality traits, particularly those relating to their emotional responses and behaviors.