All of the following are benefits associated with statutory stock options EXCEPT:

a) the taxpayer does not have to include any amount in income when the option is granted.

b) the taxpayer does not have to include any amount in their regular, taxable income when they exercise the option.

c) all profits from the sale of underlying stock are subject to the more favorable capital gain tax rates.

d) if the taxpayer has a nonqualifying disposition, the amount of compensation included in income is not subject to social security and medicare tax.