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Employee Stock Options

Question 315

Multiple Choice

Employee stock options:


A) Have a maximum life of 5 years.
B) Generally cannot be exercised for the first 4 years.
C) Generally have a 5-year vesting period.
D) Are usually forfeited if an employee leaves a firm shortly after the options are granted.
E) Can be actively traded on the open market once they are vested.

Correct Answer:

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