How many options did netflix grant to employees

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Problem - The following is a summary of the stock option activity at NetFlix during 2011.

Options Outstanding

Shares Available for Grant Number of Shares Weighted-Average Exercise Price

Balances as of December 31, 2010 2,038,502 2,892,130 36.11

Authorized 5,700,000

Granted (724,994) 724,994 154.09

Exercised - (659,370) 29.11

Balances as of December 31, 2011 7,013,508 2,957,754 66.59

Required:

a. How many options did NetFlix grant to employees during the year? At what price may NetFlix employees buy shares in the future for options granted during 2011?

b. How many options did employees exercise during the year?

c. When employees exercised their options during 2011, how much cash did NetFlix receive?

d. Assume that NetFlix granted options "at the money" during 2011. How much profit did employees make at exercise?

Reference no: EM131567182

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