Which of the following is NOT a method of exercising stock options?

The method of exercising stock options that is not typically recognized is the loan exercise. In exercising stock options, the common methods include cash exercise, stock-for-stock, and cashless exercise, each of which allows the option holder to convert their stock options into shares of stock in different ways.

Cash exercise involves the option holder paying the exercise price in cash to acquire the underlying shares. This method is straightforward and is particularly used when the holder has the necessary cash funds available.

Stock-for-stock exercise enables the option holder to use previously owned shares to pay for the exercise price. In this scenario, the holder exchanges a portion of their existing stock to cover the cost of exercising their options, which can be beneficial for those who want to avoid out-of-pocket expenses and retain their cash.

Cashless exercise is a popular method where the option holder can exercise their options without needing upfront cash. Instead of paying the exercise price directly, the option holder sells a portion of the shares acquired through the exercise to cover the transaction costs, effectively allowing them to acquire shares without a substantial financial outlay.

In contrast, the concept of a loan exercise isn't a standard method associated with exercising stock options. While it is possible to envision scenarios involving borrowed funds to cover the exercise price, typically