A) Tell me what stock options are and why companies would use them.

B) Shane is an employee and is granted options to purchase 8,000 shares at $20 each, vesting 25% per year over 4 years. After 3 years, the stock price is $70 per share. He has not yet exercised any options.

C) Tell me the amount of option "profit" Shane will make if he exercises the options he has after 3 years.

D) Show your work.