Which of the following defines a Stock Option the most?   Select One:   A grant giving employees the right to buy a specified number of common shares at a specified price which equals or is higher than the market price of the company’s shares at the time the options are issued within some specified time period. A grant giving employees the right to buy a specified number of preferred shares at a specified price which equals or is higher than the market price of the company’s shares at the time the options are issued within some specified time period. A grant giving employees the right to buy a specified number of common shares at a specified price which equals or is higher than the market price of the company’s shares at the time the options are issued immediately after the employees are hired. A grant giving employees the right to buy a specified number of common shares at a specified price which is lower than the market price of the company’s shares at the time the options are issued within some specified time period.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Which of the following defines a Stock Option the most?

 

Select One:

 

A grant giving employees the right to buy a specified number of common shares at a specified price which equals or is higher than the market price of the company’s shares at the time the options are issued within some specified time period.

A grant giving employees the right to buy a specified number of preferred shares at a specified price which equals or is higher than the market price of the company’s shares at the time the options are issued within some specified time period.

A grant giving employees the right to buy a specified number of common shares at a specified price which equals or is higher than the market price of the company’s shares at the time the options are issued immediately after the employees are hired.

A grant giving employees the right to buy a specified number of common shares at a specified price which is lower than the market price of the company’s shares at the time the options are issued within some specified time period.

 

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