Company XYZ grants 250,000 options to its employees on 1st December 2016. At the grant date the exercise price is 1.55, the share price of XYZ is 1.55, the risk free rate of interest is 1.25%, the volatility of company XYZ's share price is 30%. The vesting period is four years. The maturity date for the options is 1st December 2026. The options have an expected life of six years. What expense should company XYZ report in its income statement for these options? Show all aspects of your calculation.