A company is a publicly held corporation. at the beginning of year $1$ the company issues $10,000$ stock options to its president. they can be exercised at an exercise price of $$40$ per share, but only if the president works until the end of year $4.$ she then has two additional years to actually make the conversion. the price of the stock on the first dau pf year $1$ us $$40$ and goes up $$1$ per month thereafter. a computer option pricing model is used to determine the value of the option on january $1,$ year one $($$$6),$ december $31,$ year one $($$$10),$ and december $31,$ year $2($$$16).$ the company uses fair value method of accounting for stock options. how much expense shoud the company recognize for year $2$ in connection with this award?

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Okay lets break this down stepbystep The executive was granted 10000 stock options at an exer... View the full answer