Which of the following are typical characteristics of employee stock options?
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 are typically issued with a designated price, have a 10-year life, and are subject to a vesting period. They are not exchange-traded, meaning they cannot be bought and sold on a stock exchange like publicly traded stocks. Therefore, options are typically exercised directly with the company that issued them.

Which of the Following Are Typical Characteristics of Employee Stock