If Julie has an employee stock option that allows her to purchase 1,000 shares of stock at a strike price of $10.00 and she is currently 50% vested in her stock options, how much money would she have to pay to exercise the option contract today

Respuesta :

The amount would she have to pay to exercise the option contract today is: $50,000.

Exercise option

Using this formula

Exercise option=(Stock per shares×Strike price)×Percentage vested in stock option

Let plug in the formula

Exercise option=(1,000 shares×$10)×50%

Exercise option=$100,000×50%

Exercise option=$50,000

Therefore the amount would she have to pay to exercise the option contract today is: $50,000.

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