Which of the following is the best definition of stock options?
A. An executive has the right to buy the company's stock at the price as of a pre-determined date which can result in a hefty profit if the stock's value increases over time.
B. An executive has the right to buy the company's stock at the price as of a to-be-determined date which can result in a hefty profit if the stock's value increases over time.
C. An executive has the right to buy the company's stock at its lowest price within the last five years which can result in a hefty profit if the stock's value increases over time.
D. An executive has the right to buy the company's stock at its highest price within the last five years which can result in a hefty profit if the stock's value increases over time.
Answer: A. An executive has the right to buy the company's stock at the price as of a pre-determined date which can result in a hefty profit if the stock's value increases over time.
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What will be an ideal response