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Basic Question 3 of 14
For "plain vanilla" options SAB 107 allows to use the ______ as the expected option term.
B. original contractual option term.
C. average of the two terms.
A. vesting period.
B. original contractual option term.
C. average of the two terms.
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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
explain issues associated with accounting for share-based compensation;
explain how accounting for stock grants and stock options affects financial statements, and the importance of companies' assumptions in valuing these grants and options.
CFA® 2025 Level II Curriculum, Volume 2, Module 11.