Which of the following statements is true of stock options?
A) Employees who are given stock options are legally bound to sign a noncompete clause.
B) The stock-option price for employees is higher than the selling price of the stock when the option is issued.
C) They give employees the right to purchase a certain number of shares of stock at a given price.
D) They give employees the opportunity to be part of the company's inventory management.

Question

Quizplus · Accepted Answer

Stock options provide employees with the right to buy a specific number of shares of the company's stock at a predetermined price, offering a potential financial benefit if the stock's market price exceeds the option price.

Which of the Following Statements Is True of Stock Options