Question

Working alone, complete the following: You receive 1000 options today, Nov 3 2019. The option grant has an exercise price of
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Value to employee of vested portion (in each year) = number of shares vested * (share price - option exercise price).

The exercise price is fixed at $10.

A B C D Vested Vested portion portion # % E value of vested portion 1 Year Share Price 0 $10.00 1 $11.00 2 $12.10 3 $13.31 4

ДА В Value of vested portion Share Price Vested portion # Vested portion % 10 0.25 1 Year 20 3 1 4 2 5 3 64 0.5 =B2*1.1 =B3*1

Value of total option grant is $4,641 (since the options will be kept until the grant is fully vested).

Add a comment
Know the answer?
Add Answer to:
Working alone, complete the following: You receive 1000 options today, Nov 3 2019. The option grant...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Q3. Gimble Inc. granted 100 stock options to its key employees on 1/1/2020. The options vest...

    Q3. Gimble Inc. granted 100 stock options to its key employees on 1/1/2020. The options vest after a 3- year service period and had a total grant-date fair value of $900. Each option has an exercise price of $20. During the second year of the service period, several employees left the company and thereby forfeited options with an original total grant-date fair value of $144. In the fourth year, after the options vested, Mary Lock exercised options with a grant-date...

  • Q3. Gimble Inc. granted 100 stock options to its key employees on 1/1/2020. The options vest...

    Q3. Gimble Inc. granted 100 stock options to its key employees on 1/1/2020. The options vest after a 3- year service period and had a total grant-date fair value of $900. Each option has an exercise price of $20. During the second year of the service period, several employees left the company and thereby forfeited options with an original total grant-date fair value of $144. In the fourth year, after the options vested, Mary Lock exercised options with a grant-date...

  • Q3. Gimble Inc. granted 100 stock options to its key employees on 1/1/2020. The options vest...

    Q3. Gimble Inc. granted 100 stock options to its key employees on 1/1/2020. The options vest after a 3- year service period and had a total grant-date fair value of $900. Each option has an exercise price of $20. During the second year of the service period, several employees left the company and thereby forfeited options with an original total grant-date fair value of $144. In the fourth year, after the options vested, Mary Lock exercised options with a grant-date...

  • Q3. Gimble Inc. granted 100 stock options to its key employees on 1/1/2020. The options vest...

    Q3. Gimble Inc. granted 100 stock options to its key employees on 1/1/2020. The options vest after a 3- year service period and had a total grant-date fair value of $900. Each option has an exercise price of $20. During the second year of the service period, several employees left the company and thereby forfeited options with an original total grant-date fair value of $144. In the fourth year, after the options vested, Mary Lock exercised options with a grant-date...

  • Assume that on January 1, year 1, XYZ Corp. issued 1,000 nonqualified stock options with an...

    Assume that on January 1, year 1, XYZ Corp. issued 1,000 nonqualified stock options with an estimated value of $3.80 per option. Each option entitles the owner to purchase one share of XYZ stock for $14 a share (the per share price of XYZ stock on January 1, year 1 when the options were granted). The options vest 25 percent a year (on December 31) for four years (beginning with year 1). All 500 stock options that had vested to...

  • Assume that on January 1, year 1, XYZ Corp. issued 1,000 nonqualified stock options with an...

    Assume that on January 1, year 1, XYZ Corp. issued 1,000 nonqualified stock options with an estimated value of $4.20 per option. Each option entitles the owner to purchase one share of XYZ stock for $14 a share (the per share price of XYZ stock on January 1, year 1 when the options were granted). The options vest 25 percent a year (on December 31) for four years (beginning with year 1). All 500 stock options that had vested to...

  • On January 1, 2019, Riverbed Corporation granted 11,000 options to key executives. Each option allows the...

    On January 1, 2019, Riverbed Corporation granted 11,000 options to key executives. Each option allows the executive to purchase one share of Riverbed’s $5 par value common stock at a price of $19 per share. The options were exercisable within a 2-year period beginning January 1, 2021, if the grantee is still employed by the company at the time of the exercise. On the grant date, Riverbed’s stock was trading at $25 per share, and a fair value option-pricing model...

  • on january 1, 2018, richard corp granted 4800 options to its officers. Each option entitles the...

    on january 1, 2018, richard corp granted 4800 options to its officers. Each option entitles the holder to purchase one share of richards $5 par value of common stock at $30 per share anytime for next 5 years. the market price of stock is $48 per share on date of grant. the fair value of option n date of grant is $184000. the period of benefit is 2 years. b) prepare journal entry when all options are exercised for 5...

  • ournal entry richard corp granted 4800 options to its officers each option entitles the holder to...

    ournal entry richard corp granted 4800 options to its officers each option entitles the holder to purchase one share of richard 5 par value of common stock at 30 per share anytime for next 5 years. the market price of stock is 48 per share on date of grant the fair value of option n date of grant is 184000. the period of benefit is 2 years. a. prepare jornal entry for first two years. b. prepare jornal entry when...

  • Journal entry richard corp granted 4800 options to its officers each option entitles the holder t...

    journal entry richard corp granted 4800 options to its officers each option entitles the holder to purchase one share of richard 5 par value of common stock at 30 per share anytime for next 5 years. the market price of stock is 48 per share on date of grant the fair value of option n date of grant is 184000. the period of benefit is 2 years. prepare jornal entry for first two years. prepare jornal entry when all options...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT