Which of the following is true?
A. An employee stock option is usually held to maturity
B. An employee stock option tends to be exercised earlier than a traded option with the same terms
C. An employee stock options tends to be exercised later than a traded option with the same terms
D. Employee stock options are usually exercised as early as possible
B
Employee stock options tend to be exercised earlier than similar traded options. This is because they cannot be sold and exercising them is the only way to monetize gains. A, C, and D are not true.
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Which of the following statements about a contributory group life insurance plan is CORRECT?
A) All eligible employees must participate in the plan. B) The employer must pay for the entire cost of the insurance program. C) At least 70% of eligible employees must participate in the plan. D) The employees must pay for part of the cost of the insurance program.