Gregory's on Ormond, Inc. grants its president 2,000 stock options on January 1, Year 1 that give him rights to purchase shares of the company for $40 per share on December 31, Year 2. At the time the options were granted, the fair value of the options totaled $20,000. At December 31, Year 1 the company's stock sold for $45 per share and at December 31, Year 2 the selling price of the stock was $55 per share. In its Year 2 financial statements, Gregory's on Ormond would recognize compensation expense relative to the options of: A. ($10,000) B. $0 C. $15,000 D. $10,000