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In a Stock Option Plan, If the Market Price of the Stock

Question 95

Multiple Choice

In a stock option plan, if the market price of the stock exceeds the exercise price, _____.


A) employees can then exercise the option and buy the stock
B) employees have to purchase the stock at the new price
C) employees have to forfeit their claims to the company shares
D) employees will make a loss through stock ownership

Correct Answer:

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