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 a traded option with the same terms
C) An employee stock options tends to be exercised later than a traded 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 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