Option $2$: Calculate the accounting impact on the company if it had implemented a new stock option plan with the following characteristics:

Grant of $\_\_2,000,000\_\_\_\_$ stock options.

The options are granted with a strike price equal to the actual stock price from the first day of the fiscal year $3$ years ago.

Use $25\%$ as the expected volatility.

Use $3\%$ as the appropriate risk$-$free rate.

The stock options have an expiration date of $10$ years.

The stock options vest in equal proportions over a $3-$year period $($i$.$e$.,$ the employee must be employed on the last day of each fiscal year to vest in one third of the stock options$).$