Question

falcon company grants stock options to its upper and middle management employees. the options vest over a 4-year period, with 25% exercisable after 1 year, 25% after 2 years, another 25% after 3 years, and the remaining 25% after 4 years. this is an example of

Answer 1

There is a deadline specified in the stock option agreement by which you must exercise your options or they will expire (typically 10 years). An option will automatically convert to long or short shares of stock in the underlying if it expires in-the-money.

What is  stock options?

• One type of payment is stock options. Employees, independent contractors, consultants, and investors may be granted them by businesses. These contracts, or options, provide employees the right to purchase or exercise a predetermined number of shares of company stock at a defined price, or the grant price.
• a business that doesn't have any securities on the market that could potentially reduce EPS. Shares Transfers, Stock Options, Stock Warrants, Restricted Stock, Restricted Stock Units, Phantom Stock Plans, Stock Appreciation Rights, and other awards with values based on the value of specified stock are examples of equity-based remuneration.

To learn more about stock options refer to:

brainly.com/question/25693765

#SPJ4