Solutions to Chapter 4 Problems
28. Nonqualified Stock Options. Five years ago, Cargo Corporation granted a nonqualified stock option to Mark to buy 3,000 shares of Cargo common stock at $10 per share exercisable for five years. At the date of the grant, Cargo stock was selling for $9 per share. This year, Mark exercises the option when the price is $50 per share. a. ................
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