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plz help with both Which statement best describes the potential methods for measuring the value of stock options? O A The instrinsic value method captures

image text in transcribedplz help with both
Which statement best describes the potential methods for measuring the value of stock options? O A The instrinsic value method captures the true economic cost of stock options. O B. If you have the option to buy 100 shares of stock at $10 per shares with an exercise period of 2 years but the current stock price is $8 then there is no value to owning this option OC. The fair value method tries to capture the cost of what the company is giving to employees when they grant stock options. OD. The fair value method is a better method than the intrinsic value method because it uses the actual value of stock options rather than an estimate QUESTION 4 On January 1, 2014, Happy Company granted the CEO an option to buy 1,000 shares of Happy Company stock for $30 per share, the option exercisable for 5 years from date of grant Using a fair value option pricing model, total compensation expense is determined to be $9,000. The vesting period is for three years beginning January 1, 2014. She exercised 700 options on October 1, 2017 but let the remaining 300 options expire. Quoted market prices of the company were: January 1, 2014 $60 per share October 1, 2017 572 per share January 1, 2019 $30 per share As a result of the option granted to the CEO, using the fair value method, the company should recognize compensation expense for 2014 on its books in the amount of $9,000. $3,000. O 1,500 $0

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