Wison Inc. developed a business strategy that uses stock options as a major compensation incentive for its top executives. On January 1,2018, 20 million options were granted, each giving the executive owning them the right to acquire six $1 par common shares. The exercise price is the market price on the grant date- $10 per share. Options vest on January 1, 2022. They cannot be exercised before that date and will expire on December 31,2024 . The fair value of the 20 million options, estimated by an appropriate option pricing model, is $40 per option. Ignore income tax. On March 1, 2022, when the market price of Witson's stock was $14 per share, 3 million of the options were exercised