Thank you @GeorgeM777 for providing the link I referred to. I'm still not sure why the link changed when I tried to post it.
The terms get a little confusing for me, so maybe it's best if I give the actual numbers:
ESPP start date FMV: $115.90
ESPP end date FMV: $110.94
Purchase price: $94.30
Sale price: $177.50
I always assumed that the "not less than 85% of" was in reference to the fact that the discount can't be higher than 15%. However, if the "option price" refers to the actual purchase price and "the time the option was granted" refers to the ESPP start date, then my option price would be less than 85% of the price at the time the option was granted. I have a feeling I have the terms wrong, but what would be the calculation if the option price is less than 85% of the FMV of the stock at the time the option was granted?
