1. An option is "in the money" if:
    It is vested and, therefore, exercisable.
    Its price is less than the stock's market value.
    Its price is greater than the stock's market value.
2. With nonqualified stock options, taxes are triggered:
    When the options are granted
    When the options are exercised
    When the stock is sold
    Both b and c
3. Employee stock options:
    Allow you to buy a certain number of shares of your employer's stock at a pre-set price within a certain time frame.
    Require you to buy a certain number of shares of your employer's stock at a pre-set price within a certain time frame.
    Prohibit you from buying any stock in your employer except at certain times.
4. Employee stock options are given to:
    Executives only.
    Rank and filers only.
    Executives and rank and filers alike.
5. With incentive stock options, taxes are triggered
    When the options are granted
    When the options are exercised
    When the stock is sold
    It depends
6. Which stock options may be granted at discounts to their then market prices?
    Nonqualified stock options
    Incentive stock options
    Both
7. Your employer's stock is selling for $50 a share. You use a "stock swap" to exercise your option to buy 5,000 shares at $25 each. What happens?
    You pay $125,000 in cash to exercise your option
    You exchange 2,500 shares you already own for the 5,000 new shares
    You borrow from a stockbroker the money needed to exercise your option and, simultaneously, sell at least enough shares to cover your costs
8. It is prudent to exercise your options early when:
    You have a lot of faith in your employer's prospects and, therefore, its stock
    You are overdosing on company stock