In 2017, a company employee received an option to purchase the company's stock at $45 per share. If the stock is trading at $40 a share in 2019, the employee will most likely

		not bother to exercise the options.
		sell the shares to a third party slightly above the market price.
		exercise the option, receiving a gain of $40.
		exercise the option, receiving a gain of $5.
		buy the stock at $45 per share.

Answer rating: 100% (QA)

In this scenario the employee was granted stock options at a price of 45 per share and the cu... View the full answer