There should also be an expiration date (sometime far in the future, not Sep 2007, which is the grant date). Also, it should be clear from the text whether she’s got options for 1,100 shares (that would be 11 standard contracts), or perhaps more.
Whenever she exercises the options, she will get 1,100*(stock price on that date – $26.35), if stock price is above $26.35, or nothing otherwise. She can exercise up to the expiration date. However, there are lots and lots of tax implications on option awards, and it may be very complicated (due to tax issues) to decide what the best course of action is. There may also be strings attached.
PS: yes, this is certainly an opportunity to invest in the company she works for. Whether it’s a good or bad investment, only future will tell.
