Refer to the 2016 financial statements for Canadian Tire Corporation in Appendix C. 

Required: 

a. How many stock options were outstanding at the end of 2016? Reconcile the change in the outstanding options for the year using the same categories that the company reports in its notes to the financial statements. 

b. What was the weighted average exercise price of stock options outstanding at the end of 2016? What was the weighted average price of the company’s shares when the options were exercised? 

c. What were the four categories of share-based payments that Canadian Tire offered to its employees, directors, and executive officers? Describe how each of the categories is settled. 

d. What was the intrinsic value of the liability for vested benefits arising from share-based payment plans as at December 31, 2016? What was the carrying value of the liability for share-based payments at the same date? Identify the two most probable factors contributing to the difference.