If Spotify in 5 years time is $500, you buy 100 shares for $10k, and immediately sell them for $50k, making a $40k profit (or you keep them).
If Spotify in 5 years time is $102, you buy 100 shares for $10k and sell for $10,200, making $200
If Spotify shares in 5 years times is $90, you don't bother buying the shares, but your options are worthless.
Now imagine you were given 100 shares instead, but couldn't sell them for 5 years (an RSU - or restricted stock unit)
In 5 years time, if Spotify is $500/share, your shares are worth $50k
In 5 years time, if Spotify is $102/share, your shares are worth $10,200
In 5 years time, if Spotify is $90/share, your shares are worth $9,000
If Spotify in 5 years time is $500, you buy 100 shares for $10k, and immediately sell them for $50k, making a $40k profit (or you keep them).
If Spotify in 5 years time is $102, you buy 100 shares for $10k and sell for $10,200, making $200
If Spotify shares in 5 years times is $90, you don't bother buying the shares, but your options are worthless.
Now imagine you were given 100 shares instead, but couldn't sell them for 5 years (an RSU - or restricted stock unit)
In 5 years time, if Spotify is $500/share, your shares are worth $50k
In 5 years time, if Spotify is $102/share, your shares are worth $10,200
In 5 years time, if Spotify is $90/share, your shares are worth $9,000