How much income does Tracy recognize at grant if she received 100 non-qualified stock options with...
How much income does Tracy recognize at grant if she received 100 non-qualified stock options with a $3 exercise price and she exercised the option when the stock was worth $7 a share?
(A) $0
(B) $300
(C) $400
(D) $700
Homework Answers
Income recognized in case of Non-qualified stock options will be the difference between value of the stock and exercise price
Hence, income recognized = (7 - 3) * 100 = $400
Answer is Option C
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