FoX Inc. granted options for 200,000, $1 par common shares on January 1 Year 2020 with an exercise price of $15 and market price of $10 per common share. The options cannot be excercised before January 1 Year 2022 and expire on December 31, year 2024. Each option is worth $8 at grant date based on an appropriate option pricing model. On January 15, 2022 employees exercise 85% of the options when market price of the stock is $22 and the remaining options expire. 

How much cash will Fox debit for these options during 2020 through 2024?

Answer rating: 100% (QA)

The cash debited for the options during 2020 through 2024 will depend on the timing of the option ex... View the full answer