Pastore Incorporated granted options for 1 million shares of its $1 par common stock at the beginning of the current year. The exercise price is $34 per share, which was also the market value of the stock on the grant date. The fair value of the options was estimated at $7.50 per option.

What would be the total compensation indicated by these options?

$34.0 million

$26.5 million

$60.5 million

$7.5 million