Listed below are ten terms followed by a list of phrases that describe or characterize five of the terms. Match each phrase with the correct term by placing the letter designating the best term in the space provided by the phrase. Terms: A. Bonuses B. Expired options C. Grant date D. Option exercise date E. Option exercise price F. Performance condition plans G. Stock option H. SARs I. Stock volatility J. Vesting period Phrases: 1. ____ A right to buy shares of stock in the future. 2. ____ Shares given for achieving financial goals. 3. ____ Benefit period over which stock option compensation expense is spread. 4. ____ Paid-in capital effectively renamed under the fair value approach. 5. ____ Expensed as compensation in the period earned.

6. ____ Require(s) liability recognition if the employee can elect to receive cash or stock. 7. ____ Date on or after which employees can buy stock with options. 8. ____ Date on which options are awarded. 9. ____ An important factor in option pricing models. 10. ____The amount paid to convert the option into stock.