What was the total number of stock options outstanding on December 31, 2021 (in millions)?

What was the total number of stock options outstanding on December 31, 2021 (in millions)?

• A. 59 million
• B. 75 million
• C. 74 million
• D. 88 million

Answer: (B)

Outstanding stock options are all options that have been granted but have not yet been exercised or canceled as of the reporting date. This balance reflects the net effect of option activity during the period: new grants increase the count, while exercises, forfeitures, and expirations reduce it. The number reported as of December 31, 2021 represents the total options still outstanding at that date, which is the figure used for dilution calculations and for presenting the company’s equity position. In this case, the end-of-year balance shown in the notes is 75 million, so that is the figure used for the total options outstanding.

Outstanding stock options are all options that have been granted but have not yet been exercised or canceled as of the reporting date. This balance reflects the net effect of option activity during the period: new grants increase the count, while exercises, forfeitures, and expirations reduce it. The number reported as of December 31, 2021 represents the total options still outstanding at that date, which is the figure used for dilution calculations and for presenting the company’s equity position. In this case, the end-of-year balance shown in the notes is 75 million, so that is the figure used for the total options outstanding.