Under what terms can an executive buy stock in a stock option plan?
A) In future years at a fixed discount rate depending on performance
B) In future years with a guaranteed return
C) At a price equivalent to the company's book value
D) In future years at a price determined when the stock option was issued
E) At any date but must be approved by the company board of directors

Question

Quizplus · Accepted Answer

Executives can usually buy stock in a stock option plan in future years at a price determined when the stock option was issued. This price is often set at a discount to the current market price, and may be subject to performance or other conditions.

Under What Terms Can an Executive Buy Stock in a Stock