Maren Received 10 NQOs (Each Option Gives Her the Right

question 115

Multiple Choice

Maren received 10 NQOs (each option gives her the right to purchase 10 shares of stock for $8 per share) at the time she started working when the stock price was $6 per share. When the share price was $15 per share, she exercised all of her options. Eighteen months later she sold all of the shares for $20 per share. What is the amount of Maren's bargain element?

• A)$0
• B)$700
• C)$900
• D)$1,500
• E)None of the choices are correct.

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Definitions:

Jelly Beans

Small, bean-shaped sugar candies with soft candy shells and thick gel interiors, available in various flavors.

Proportion

A statistical measure that reflects the fraction of the total number of items in a particular category.

Standard Deviations

A measure that quantifies the amount of dispersion or variability of a set of data points or distribution from its mean.

Contact Lenses

Optical devices made of thin plastic or glass placed directly on the eye's surface to correct vision.