Which of the following strategies makes no sense?
A. An employee exercises stock options early and sells the stock. No dividends are expected
B. An employee exercises stock options early and keeps the stock. No dividends are expected
C. An employee exercises stock options early and sells the stock. Dividends are expected
D. An employee exercises stock options early and keeps the stock. Dividends are expected.
B
An exchange-traded call option on a non-dividend-paying stock should never be exercised early. The only reason for exercising an employee stock option is monetize it. (The option cannot be sold). But to monetize the option the shares of stock that are obtained must be sold.
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Fill in the blank(s) with the appropriate word(s).
Under the International Bank for Reconstruction and Development scheme, the World Bank offers low-interest loans to risky customers whose credit rating is often poor
Indicate whether the statement is true or false.