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Option grant

An option grant is a right to acquire a set number of shares of stock of a company at a set price. In US companies, an option grant is typically awarded to an employee, advisor or other individual who performs services for the company, and the option can be exercised during the term of service to the company and for a finite period of time following cessation of services.

There are several terms that are important when granting options including the per share exercise price, number of shares, vesting schedule (meaning, the schedule that defines when shares underlying the option may first be acquired), and the period of time during which the option can be exercised.