Effect on the value of the option. Employee Stock Option: Employee stock option is given by the company to attract and retain the employees in the organization. Company contract with the employees and give rights to purchase some number of stock of share from the company within a period.

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Chapter 23, Problem 2QP

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To determine: Effect on the value of the option.

Employee Stock Option:

Employee stock option is given by the company to attract and retain the employees in the organization. Company contract with the employees and give rights to purchase some number of stock of share from the company within a period.

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