Which of the Following Is True Regarding Stock Options

Which of the following is true regarding stock options?

A) A loss is realized when stock options lapse.
B) There is typically no tax effect on the grant date.
C) The bargain element on a nonqualified option is taxed to employees at capital gain rates.
D) Income recognized on the exercise date is greater for incentive stock options than nonqualified options.

Correct Answer:

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