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What is the option period of incentive stock options?
An incentive stock option, or "ISO," is a special benefit that some companies offer to their employees. The options let you buy shares in the company at a predetermined price, even if the stock is trading at much higher levels.If you are granted incentive stock options, you generally must exercise your options within 10 years of the time they are granted. This is your option period.But if you own at least 10% of the company’s stock -- a good possibility if you’re a top executive or key investor at a small company -- the option period is usually only five years.Return to Questions
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