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At the beginning of the year, Bird Corporation granted 8,000 stock options to their company's CEO. Each stock option gives the holder the right to

At the beginning of the year, Bird Corporation granted 8,000 stock options to their company's CEO. Each stock option gives the holder the right to purchase a share for $20, the stock price at the date of the grant, after the service period of 4 years. Using a fair value option pricing model, the fair value of each option at the grant date is $5 and the average market price of the stock during the year was $19.

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