A share option is an instrument that gives the holder the right but not the obligation to:
A)buy a certain number of shares in the company by a specified date at a stipulated price.
B)sell a certain number of shares in the company by a specified date at a stipulated price.
C)receive a certain dividend declared by the company by a specified date.
D)receive a bonus issue of shares in a proportion as notified by the company.

Question

Quizplus · Accepted Answer

A share option gives the holder the right, but not the obligation to buy a certain number of shares in the company by a specified date at a stipulated price. This means that the holder has the option to choose whether or not to buy the shares, but if they choose to exercise the option, they must buy the shares at the predetermined price.

A Share Option Is an Instrument That Gives the Holder