On January 1, 2013, Red Inc. issued stock options for 250,000 shares to a division manager. The options have an estimated fair value of $6 each. To provide additional incentive for managerial achievement, the options are not exercisable unless divisional revenue increases by 5% in three years. Red initially estimates that it is probable the goal will be achieved. Ignoring taxes, what is compensation expense for 2013?

A) $ 1,500,000.

B) $ 0.

C) $ 250,000.

D) $ 500,000.