6. Cobabe Corporation issued 4,000 employee stock options with a fair value of $3 and an intrinsic value of zero on January 1, 2021. Company shares were trading at $32 on January 1, 2021. It is expected that 80 percent of the options will vest over the three-year vesting period. In 2022, the fair value of the options increases to $4.75, the shares are still trading at $35, and management estimates 80 percent of the options will vest. The employee stock option expense in 2022 will be:

a. The same as 2021 because the same number of options are expected to vest.

b. Higher than 2021 because of the stock option fair value is higher.

c. Higher than 2021 because the value of the stock price increased.

d. Lower than 2021 by the amount cash the employees pay to the company upon exercise the employee stock options is reduced.

e. Both a and d are true.