Colleen's employer gives her options on 900 shares of company stock. The stock price on the day of the award was $54, and the closing price was as follows in the future: end of 2020 - $47; end of 2021 - $54; end of 2022 - $60. What was the value to Colleen of this award at the end of 2022?

Question

Rebekah Harmon

Business

30 September, 04:01

Colleen's employer gives her options on 900 shares of company stock. The stock price on the day of the award was $54, and the closing price was as follows in the future: end of 2020 - $47; end of 2021 - $54; end of 2022 - $60. What was the value to Colleen of this award at the end of 2022?

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Answers (1)

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Atticus · Answer 1

The multiple choices are as follows:

a. 4,800

b. 6,000

c. 5,400

d. 54,000

Option D,$54,000 is correct

Explanation:

The worth of the award at end of any year is the number of shares given under the award multiplied by the closing price of the share at end of that year.

In other words, the value to Collen of this award of 900 shares from Collen's employer is $54,000 (900*$60)

The correct option is D,$54,000.

The other options are obviously wrong because multiplying any closing price by 900 shares would give something close to $54,000, not $4800 or $6,000 or even $5400