Silina Ltd has registered as a company in the year 2014. On 1 July 2020, Silina Lt provided two million options to its Chief Executive Officer (CEO), Thomas. The options were valued at $2.00 each and allowed the chief executive officer to acquire shares in Silina Ltd for $8.00 each. The chief executive officer is not permitted to exercise the options before 30 June 2022 but then may exercise them any time between 1 July 2022 and 30 June 2023 . The market price of the Silina Ltd shares on 1 July 2020 was $7.50. On 31 December 2022 the share price reaches $8.70 and the chief executive officer decides to exercise his options and acquire the shares in Silina Ltd. Required: (i) Review the share price from July 2020 to December 2022 and explain when: a. The options will be out of money b. The options will be in the money c. Thomas will be indifferent towards exercising the options [1 mark] [1 mark] [1 mark] (ii). Briefly outline how share options align the long-term interest of the manager and the shareholders. [2 mark] (iii) Prepare the necessary journal entries to account for the share options [5 marks