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CEP Certified Equity Professional VIP Practice Exam
CEP — The Certified Equity Professional (CEP) designation is issued by the CEP Institute at Santa Clara University; the three-level exam series tests mastery of equity compensation administration, taxation, accounting (ASC 718), and legal/regulatory compliance, with each level consisting of approximately 100 multiple-choice questions and a 70% passing threshold.
31
Questions
120m
Time Limit
70.00%
To Pass
Question 1 of 31👑 VIP
Sarah, a senior software engineer, exercises 2,000 Incentive Stock Options (ISOs) with an exercise price of $10 per share when the fair market value (FMV) is $45 per share. She holds the shares for 14 months after exercise and then sells them for $60 per share. Which of the following correctly describes the tax treatment of her gain?
Questions 2–31 and full explanations are VIP-exclusive.