Which term refers to the right to purchase a stated number of shares of a company stock at today's price at some time in the future?
A) stock option
B) gainsharing plan
C) multiplier method
D) at-risk variable plan

Question

Quizplus · Accepted Answer

A stock option is the right to purchase a specific number of shares of company stock at a specific price during a specific period. The executive thus hopes to profit by exercising his or her option in the future but at today's price. This assumes the stock will go up.

Which Term Refers to the Right to Purchase a Stated