Typically, an employee stock option is which one of the following?
A) call option
B) covered call
C) put option
D) protective put
E) index option

Question

Quizplus · Accepted Answer

An employee stock option is a specific type of call option that is granted to employees as part of their compensation package. This allows employees to purchase company stock at a predetermined price, known as the strike price, at some future date. If the stock price increases above the strike price, the employee can exercise the option and purchase the stock at the lower price, then sell it at the higher market price for a profit.

Typically, an Employee Stock Option Is Which One of the Following