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Stock option accounting Batty, Inc. grants 6,000 stock options to key executives on 1/2/2019.Each option allows the holder to buy one share of $4 par
Stock option accounting
Batty, Inc. grants 6,000 stock options to key executives on 1/2/2019.Each option allows the holder to buy one share of $4 par common stock for $16 per share.The options are exercisable beginning on 1/1/2021 for a 2-year period.At the grant date, the stock was trading at $12 per share.A fair value option pricing model put the value of the options at $156,000 on 1/2/2019.On 5/1/20211,200 options are exercisedwhen the market price is $24 per share.
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