Q: What are the differences between standardized options and employee stock options?
A: There are quite a few differences between these two types of stock options. Firstly, the terms of employee stock options are not fixed while exchange traded options have standardized terms, with each contract usually representing 100 shares of the underlying stock. Secondly, employee stock options are not traded on exchanges whereas standardized options are traded on many exchanges in the United States. Finally, employee stock options generally are not transferable while standardized options are interchangeable and can be freely traded within the trading hours on any exchange that lists them.
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