Stock option plans give employees the right to purchase a(n) _____.
A) unlimited number of shares of company stock at a specified exercise price for a limited period of time
B) unlimited number of shares of company stock at a specified exercise price for an unlimited period of time
C) fixed number of shares of company stock at a specified exercise price for a limited period of time
D) fixed number of shares of company stock at a specified exercise price for an unlimited period of time

Question

Quizplus · Accepted Answer

Stock option plans typically grant employees the right to purchase a fixed number of shares of company stock at a specified exercise price, which is usually set at the stock's current market price at the time of the grant. This right is typically only exercisable for a limited period of time, typically a few years. Therefore, option plans do not usually offer employees an unlimited number of shares or an unlimited exercise period.

Stock Option Plans Give Employees the Right to Purchase A(n)