Stout Incorporated granted options for 1 million shares of its $1 par common stock at the beginning of the current year. The exercise price is $36 per share, which was also the market value of the stock on the grant date. The fair value of the options was estimated at $6.50 per option.

If the options have a vesting period of five years, what would be the balance in "Paid-in CapitalStock Options" three years after the grant date?

(a) A debit of $10.8 million

(b) A credit of $3.9 million

A debit of $3.9 million

(d) A credit of $10.8 million