Question: Two years ago Corporation WZ granted a stock option to
Two years ago, Corporation WZ granted a stock option to employee R to purchase 2,500 shares of WZ stock for $30 per share. Since the date of grant, the market price of the stock has risen steadily and reached $31 just days ago. However, the option period is 10 years. Should R exercise the option immediately to minimize the income he must recognize or should he wait for eight more years before exercising the option?
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