Question
A company granted 1,000 stock options to employees on January 1, with an exercise price of $20 per share. The fair value of the options
A company granted 1,000 stock options to employees on January 1, with an exercise price of $20 per share. The fair value of the options on the grant date is $5 per option. Calculate the stock options expense for the year, assuming the options vest evenly over four years.
Calculation | Amount |
Fair Value per Option | $5 |
Total Options Granted | 1,000 |
Vesting Period | |
Stock Options Expense (Yearly) |
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Financial Reporting and Analysis
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
6th edition
9780077632182, 78025672, 77632184, 978-0078025679
