What are Employee stock options (ESO)?

The use of options is very common in business, as they allow the parties to the contract to create today a right that can be materialized in the future usually within a pre-defined time frame.

In Employee Stock Options, the Option’s underlying asset is a Company Stock, the Parties to the Options Contract are an employer and employee, and the Option itself is part of a payment Package. Obviously, the option is always only about buying the underlying asset – Company’s Stock.

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