Ralph receives stock options (ISOs) with an exercise price of $16 when the stock is trading at $16. Ralph exercises these options two years after the date of the grant when the stock price is $37 per share. Which of the following statements is correct?

Ralph's adjusted basis for regular income tax will be $37 at exercise.

Ralph will have W-2 income of $21 per share upon exercise.

Ralph will have $16 of AMT income upon exercise.

Upon exercise Ralph will have no income for regular tax purposes.