Compute for sam net gain

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Question - Sam Lawson is a vice president at a large communications firm. His compensation includes a salary of $300,000, a bonus of $100,000 and a stock option package that allows him to purchase 15,000 shares of the company's stock at $25 per share. He can exercise the option anytime within a three year period that starts on the first of next month. The stock is now selling at $55 per share. If the current price holds until the first of the month, and Sam exercises his option, how much will he make this year (Total)?

Required - Compute for Sam's net gain when he sells his stock option.

Reference no: EM132526445

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