CUET Preparation Today
What is the "exercise price" in an ESOP? |
The price at which employees can sell their vested shares The price at which the company's shares are currently trading The price at which employees can apply for shares through their options The price at which employees can transfer their stock options to another person |
The price at which employees can apply for shares through their options |
The "exercise price" in an Employees Stock Option Plan (ESOP) refers to the predetermined price at which employees are allowed to purchase shares of the company when they decide to exercise their stock options. When employees are granted stock options, they are given the opportunity to buy company shares at a fixed price, which is set at the time of the grant and is known as the exercise price or strike price. |
