Aharon Exercises 10 Stock Options Awarded Several Years Ago

question 13

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.$1,000 (10 options × 10 shares × $10 exercise price) .

---

Definitions:

Not Positive

A state or condition that reflects negativity or a lack of affirmation, confidence, or certainty.

Express Gratitude

To show appreciation or thankfulness through words or actions.

Adjustment Refusal Message

Communication issued to inform a party that a request for changes or adjustments has been denied.

Full Refund

The repayment of the entire amount paid by a customer for a purchase, typically due to dissatisfaction with the product or service.