Which of the following are characteristics of Employee Stock Options? (Choose any that apply) a.ESOs are typically American style b.Employees typically are able to buy the options at a discount to market price
Question
Which of the following are characteristics of Employee Stock Options? (Choose any that apply) a.ESOs are typically American style b.Employees typically are able to buy the options at a discount to market price
Solution
a. ESOs are typically American style b. Employees typically are able to buy the options at a discount to market price
Both of these statements are characteristics of Employee Stock Options (ESOs).
a. ESOs are typically American style: This is true. American style options are options that can be exercised at any time up to the expiration date. Most ESOs are American style, which gives employees more flexibility in terms of when they can exercise their options.
b. Employees typically are able to buy the options at a discount to market price: This is also true. One of the main benefits of ESOs is that they are often offered at a price lower than the current market price of the company's stock. This gives employees the opportunity to potentially make a profit if the company's stock price increases.
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