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What Are Stock Options for Employees? - Value & Concept

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

In an employee stock option plan, what is the grant price?

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1. Why do employers offer employee stock options?

2. How is the intrinsic value of a stock option calculated?

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About This Quiz & Worksheet

Stock options are a common part of many employee benefit packages today, and this quiz and worksheet will allow you to measure your knowledge of this popular opportunity.

Quiz & Worksheet Goals

These assessment tools will test your knowledge of:

  • Vocabulary that applies to stock options
  • Why employers offer stock options
  • How to measure a stock option's value
  • Risks and benefits of stock options

Skills Practiced

  • Reading comprehension - ensure that you draw the most important information from the related lesson on stock options
  • Critical thinking - use relevant concepts to examine information about stock options in a different light
  • Knowledge application - use your knowledge to answer questions about features of stock options

Additional Learning

To learn more about stock options for employees, review the accompanying lesson on the value of stock options. The lesson covers the following topics:

  • Defining employee stock options, grant price, and vesting period
  • Reasons companies offer stock options
  • Measuring stock option value
  • Defining intrinsic value of stock options
  • Risks and benefits of stock options
  • Defining cashless exercise
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