q what is the amount of compensation expense


Q. What is the amount of compensation expense recognized for stock options for each year of the vesting period, given the following information?

 A firm awards stock options at-the-money when the stock is trading at $18 per share.

 The Black-Scholes value of the options is $6.

 The vesting period is two years. Upon vesting, the stock is trading at $20 per share.

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