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Basic Question 3 of 14

For "plain vanilla" options SAB 107 allows to use the ______ as the expected option term.

A. vesting period.
B. original contractual option term.
C. average of the two terms.
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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

Tamara Schultz

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.