A stock option is a right to buy

Question

Quizplus · Accepted Answer

A stock option is a contract between an employee and their employer that grants the employee the right to purchase a specific number of shares of the company's stock at a predetermined price (known as the exercise price) within a certain time period. This predetermined price is usually lower than the current market price at the time the option is granted, allowing the employee to potentially profit from the difference if the stock price goes up. So, the correct option is C, shares of the company's stock at a predetermined price at some point in the future.

A Stock Option Is a Right to Buy