a Assume that accounting were to require recognition of compensation expense on the date that stock options were granted to an employee. A precise measure of the amount of the compensation expense would not be possible, but various approximations could be made. How might the accountant put a dollar amount on the compensation expense granted through stock options? You may assume that the exercise price is the market price on the date the option is granted.

b Assume that accounting were to require recognition of compensation expense on the date a stock appreciation right were granted to an employee. A precise measure of the amount of the compensation expense would not be possible, but various approximations could be made. How might the accountant put a dollar amount on the compensation expense granted through stock appreciation rights?