A plan in which employees initially purchase an option to buy shares at some future time at a specified price is known as a/an:
A)fully paid share plan.
B)option plan.
C)replicator plan.
D)employee share trust.

Question

Quizplus · Accepted Answer

An option plan is a type of employee stock ownership plan in which employees are given the option to purchase shares at a specified price in the future. This allows employees to benefit from any increase in the company's stock price while minimizing their financial risk. The other options listed (fully paid share plan, replicator plan, employee share trust) do not involve the purchase of options.

A Plan in Which Employees Initially Purchase an Option to Buy