Dan works for ElekTek, a firm producing sophisticated electronic equipment used in state-of-the-art security systems. Dan is happy to see that the value of ElekTek's stock has reached $47 per share, because certain employees (including Dan) have the opportunity to buy a given number of shares of its stock for $30 per share for the next year regardless of how high the market price goes. ElekTek is offering some employees a:

Question

Quizplus · Accepted Answer

ElekTek is offering its employees the opportunity to buy stock at a fixed price for a set period of time, regardless of how high the market price goes. This is known as a stock option plan.

Dan Works for ElekTek, a Firm Producing Sophisticated Electronic Equipment