One thing is the price of the option, and another is the strike of the option. The price of the option is the price to sell or buy the option. The strike of the option is the price that you can exercise the option at expiration, meaning the price you can buy your wife's company stocks using the option.

Is $2 the strike or the price of the option? If that is the case then that should be the price that you can buy your wife's company stock... If the stock is at $10 then the price of the option itself is $10-$2 = $8, i.e. you won't be charged $8 but you should be paid $8 per option.

Of course the previous only holds if the strike is $2... which is the info I am missing.

One thing is the price of the option, and another is the strike of the option. The price of the option is the price to sell or buy the option. The strike of the option is the price that you can exercise the option at expiration, meaning the price you can buy your wife's company stocks using the option.

Is $2 the strike of the option? If that is the case then that should be the price that you can buy your wife's company stock... If the stock is at $10 then the price of the option itself is $10-$2 = $8, i.e. you won't be charged $8 but you should be paid $8 per option.

Of course the previous only holds if the strike is $2... which is the info I am missing.