Which of the following are typical characteristics of an employee stock option?
I. originally issued with 10-year life
II. right to purchase stock at a designated price
III. exchange-traded
IV. vesting period
A)II only
B)I and II only
C)I and III only
D)I, II, and IV only
E)I, II, III, and IV

Question

Quizplus · Accepted Answer

Employee stock options typically have a designated strike price at which the employee can purchase stock, and have a vesting period during which the employee must remain with the company before being able to exercise the option. Additionally, they are originally issued with a set expiration date, usually 10 years from the grant date. Employee stock options are not exchange-traded, as they are issued specifically to employees of the company rather than being publicly available for trading.

Which of the Following Are Typical Characteristics of an Employee