1. NewCo grants 10,000 options to its CFO, with a grant date of January 15, 2018. The options grant the CFO the right to purchase shares (one-for-one) of company stock at a price of $.50 per share.
   1. When NewCo grants the options, what will change on its balance sheet?

2. When the CFO exercises the options
   1. where will the 10,000 shares come from? (Who is selling the shares to the CFO?)

2. What will change on NewCos balance sheet?