Question

Fox, Co. granted its employees options for 70,000, $2 par common shares on January 1, 2017, when the share market price was $10 compared to the option exercise price of $11. The options cannot be exercised before January 1, 2020 and expire on December 31, 2024. Each option has a market value of $9 at the grant date based upon an option pricing model. On December 31, 2020, employees exercise 65% of the options when the market price of the stock is $17. Regarding these options, how much cash does Fox receive from 2017 through 2020? $773,500 $500.500 $409,500 None $455,000

          Fox, Co. granted its employees options for 70,000, $2 par common shares on January 1, 2017, when the share market price was $10 compared to the option exercise price of $11. The options cannot be exercised before January 1, 2020 and expire on December 31, 2024. Each option has a market value of $9 at the grant date based upon an option pricing model. On December 31, 2020, employees exercise 65% of the options when the market price of the stock is $17. Regarding these options, how much cash does Fox receive from 2017 through 2020?
$773,500
$500.500
$409,500
None
$455,000

Fox, Co. granted its employees options for 70,000, 2 par common shares on January 1, 2017, when the share market price was10 compared to the option exercise price of 11. The options cannot be exercised before January 1, 2020 and expire on December 31, 2024. Each option has a market value of9 at the grant date based upon an option pricing model. On December 31, 2020, employees exercise 65% of the options when the market price of the stock is $17. Regarding these options, how much cash does Fox receive from 2017 through 2020?
773,500500.500
409,500
None455,000

Added by Juan Manuel S.

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