explained26 Jan 2021 07:19
You receive a stock option as part of your compensation package as a new employee at your company. The grant (strike) price of the option is $50 per share. Your option vests (see below). The price per share for the company stock is currently $100. You decide to exercise your option. You will purchase your shares at the grant price ($50 per share). As the owner of the shares, you now have the choice of selling them or holding them. If you decide to sell at the current per share price, you will enjoy an immediate profit of $50 per share ($100 sell price minus the $50 purchase price), less taxes, fees and any other applicable expenses.