Which of statements is correct with respect to the options

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Problem 1: Solar Inc. (Solar) issued stock options on January 1, 20X2, to its employees. The options vest on December 31, 20X3, and expire on December 31, 20X9. The exercise price is $4.00 and Solar's share price at the time of the grant was $3.00. Which of the following statements is correct with respect to these options?

a) The share options cannot be exercised during the period January 1, 20X2, to December 31, 20X3.

b) On the date of the grant, the fair market value of each option was $0, since the share price is lower than the exercise price.

c) When the options are exercised, the employee will receive $4.00 per option from the company.

d) The expense related to granting share options is recognized fully on the date of the grant.

Reference no: EM132751657

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