Options give the holder the right to:
A) Increase the number of the company shares he is allowed to purchase
B) Buy a share in the company at a below-market rate
C) Secure a salary increase on a regular basis
D) Sell his stocks on the open market for more than the prevailing market price
E) Demand a refund on his contribution to company's equity

Question

Quizplus · Accepted Answer

Options give the holder the right to buy a share in the company at a predetermined price, which can be below the market rate if the market price rises above the option's strike price.

Options Give the Holder the Right To