The board of directors may grant stock options to managers. These are

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Stock options granted to managers are typically call options, which give the holder the right to purchase shares of the company's stock at a fixed price (the exercise price). The hope is that the stock price will rise above the exercise price, allowing the manager to profit by purchasing the stock at a lower price and then selling it for a higher price. Put options, on the other hand, give the holder the right to sell shares of the company's stock at a fixed price, which is not typically the purpose of options granted to managers.

The Board of Directors May Grant Stock Options to Managers