What incentive plan allows executives to buy a specified amount of stock in the future at or below the current market price?
A) stock option
B) indexed stock option
C) open-end stock option
D) closed-end stock option

Question

Quizplus · Accepted Answer

A)Stock option plans give the executive the option to buy a specified amount of stock in the future at or below the current market price.The stock option is a long-term incentive designed to integrate the interests of management with those of the organization.

What Incentive Plan Allows Executives to Buy a Specified Amount