On November 1, 2017, Skysong Company adopted a stock-option plan that granted options to key executives to purchase 21,300 shares of the companys $11 par value common stock. The options were granted on January 2, 2018, and were exercisable 2 years after the date of grant if the grantee was still an employee of the company. The options expired 6 years from date of grant. The option price was set at $40, and the fair value option-pricing model determines the total compensation expense to be $319,500. All of the options were exercised during the year 2020: 14,200 on January 3 when the market price was $70, and 7,100 on May 1 when the market price was $80 a share.