"The company’s corporate parent (“Rakuten”), maintains the Rakuten, Inc. Stock Option Program (the “Program”). Each Rakuten stock option has an exercise price equal to one Japanese yen and covers 100 shares of Rakuten common stock.In other words, each Rakuten stock option is worth the market price of 100 shares of Rakuten common stock when granted." Can someone explain this statement? Let' say I have received 10 Rakuten Stock Options. How does that translate to $$$? Thanks
On the first statement: Sounds like you have the option to buy 100 rakuten stocks for 100 JPY. On your question: you can buy 10 rakuten stocks @10 JPY. Market price: ?
1 option is the option to buy 100 shares for 100 jpy. 1 share is worth $9.63, so this is worth $962 if you do it right now. 10 options are worth $9620 if you execute them right now.
Rakuten employee here. It is as the previous posters have described. You pay the nominal price of 1 yen to get the share you earned; one share has been worth anywhere from 700 yen to 2400 in recent years. Options are redeemable in blocks of 100, so when your accrued options (based on performance) hit a multiple of 100, they are "granted", and you can exercise them.four years from the date they are granted.
Options can be exercised to realize gain or loss. Check investopedia to learn basic definition of Call / Put option.