1. Read the passage below and answer the two questions that follow.

Currently a Google employee holding an option with a strike price of $450, compared with the market price of $500, can realize only ________, by exercising the options, selling in the market, and pocketing the difference. But another investor should be prepared to pay more than $500 for the unvested option, depending on its life, to reflect the possibility that the stock will rise before the option expires.