Five years ago Roger was granted 5,000 incentive stock options and 3,500 nonqualified stock options. At that time the stock price was $20 per share.
The ISO exercise price was $20 per share and the NSO exercise price was $2 per share.
The value of the nonqualified options at the time of the grant was $18 per share. All of the ISOs and NSOs were exercised on the same day in the third year after the grant when the stock price was $42 per share. All of the option stock was then sold 14 months later for $65 per share.
To access MSSB discussion forum guidelines and grading rubric, click this link.