Which of the following is true?
A)An employee stock option is usually held to maturity
B)An employee stock option tends to be exercised earlier than an OTC option with the same terms
C)An employee stock options tends to be exercised later than an OTC option with the same terms
D)Employee stock options are usually exercised as early as possible

Question

Quizplus · Accepted Answer

Employee stock options tend to be exercised earlier than similar exchange-traded options.This is because they cannot be sold and exercising them is the only way to monetize gains.A,C,and D are not true.

Which of the Following Is True