Which of the following is correct with respect to incentive stock options?

	A.	The issuer recognizes a compensation deduction when the option is exercised.
	B.	The issuer recognizes compensation expense if the strike price is below the stocks selling price when the option is granted.
	C.	The option holder recognizes capital gain when the stock acquired with the option is sold.
	D.	The option holder recognizes compensation income when the option is exercised.