Solar Inc., a private company reporting under ASPE, issued share options on January 1, 2020, to its employees. The options vest on December 31, 2021, and expire on December 31, 2027. The exercise price is $4 and Solars share price at the time of the grant was $3. Which of the following statements is true with respect to these options?

Question 11 options:

a)	On the date of the grant, the fair market value of each option was $0, since the share price is lower than the exercise price.

b)	When the options are exercised, the employee will receive $4 per option from the company.

c)	The share options cannot be exercised from January 1, 2020, to December 31, 2021.

d)	The expense related to granting share options is recognized fully on the date the options are granted.