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Pastore Inc. granted options for 1 million shares of its $1 par common stock at the beginning of the current year. The exercise price is

Pastore Inc. granted options for 1 million shares of its $1 par common stock at the beginning of the current year. The exercise price is $26 per share, which was also the market value of the stock on the grant date. The fair value of the options was estimated at $7.00 per option. What would be the total compensation indicated by these options?

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