Problem:
Pastore Inc. granted options for one million shares of its $1 par common stock at the beginning of the current year. The exercise price is $35 per share, which was also the market value of the stock on the grant date. The fair value of the options was estimated at $8 per option.
What would be the total compensation indicated by these options?
A. $ 3 million.
B. $27 million.
C. $ 8 million.
D. $35 million.