Author Question: All of the following characteristics are true of an incentive stock optionwith the exception of: (Read 29 times)

Yi-Chen · **on:** Sep 13, 2020

All of the following characteristics are true of an incentive stock option with the exception of:
◦ the option price must be equal to or greater than the stock's FMV on the option's grant date.
◦ the employee cannot own more than ten percent of the voting power of the employer corporation's stock immediately prior to the option's grant date.
◦ the option must be granted within ten years from the date the plan is adopted and the employee must exercise the stock option within ten years from the grant date.
◦ there is no limit to the value of the options that become exercisable to an employee in a single year.

kingfahad97 · **Reply #1 on:** Sep 13, 2020

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