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On January 1, 2010, Cyber Company granted Chase, its president, stock options to buy 10,000 shares of Cyber's $10 par common stock at $20 per
On January 1, 2010, Cyber Company granted Chase, its president, stock options to buy 10,000 shares of Cyber's $10 par common stock at \$20 per share. The options are exercisable for two years following the grant date. Chase exercised the options on December 31,2010 . The market price of the stock was $30 on January 1,2010 , and $40 on December 31 , 2010. The fair value of a similar stock option with the same terms was $12 on the grant date. For 2010 , Cyber should recognize compensation expense of \begin{tabular}{|l|l|} \hline & $60,000 \\ \hline & $120,000 \\ \hline & $150,000 \\ \hline & $300,000 \end{tabular}
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