WHich of the following statements about nonqualified stock options are correct?

1) There is only one specific manner in which nonqualified stock option plans may be designed

2) There are no nondiscriminations rules to apply when establishing one of these plans

3) The option price when granted may be less than the fair market value of the underlying stock at that time

4) When the employee purchases shares, the employer must withhold and pay federal income taxes with respect to the bargain element, of the shares purchased.

A) 1 and 2 only

B) 2 and 4 only

C) 3 and 4 only

D) 1 2 and 3 only