LO1 Exercise of Stock Options SE 4. On June 6, Aretha Dafoe exercised her option to purchase 20,000 shares of Shalom Company $1 par value common stock at an option price of $8. The market price per share was $8 on the grant date and $36 on the exercise date. (1) When must the fair value of the option be estimated? (2) Is the market price of the stock on the exercise date most relevant to Dafoe or to Shalom Company