Andrew Is Excited About the New Program at Work

Multiple Choice

Andrew is excited about the new program at work. He will be allowed to purchase 20 shares of stock at $45 per share for a limited period. Andrew has chosen to take advantage of this plan because he expects that the market price of the stock will exceed $45. Which kind of plan is it?

A) stock option
B) gainsharing
C) employee stock ownership (ESOP)
D) windfall incentive