Question
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
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
not bother to exercise the options. | ||
sell the shares to a third party slightly above the market price. | ||
exercise the option, receiving a gain of $40. | ||
exercise the option, receiving a gain of $5. | ||
buy the stock at $45 per share. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
In this scenario the employee was granted stock options at a price of 45 per share and the cu...
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Smith and Roberson Business Law
Authors: Richard A. Mann, Barry S. Roberts
15th Edition
1285141903, 1285141903, 9781285141909, 978-0538473637
