Question: On January 1, 2016, Fox Company granted 48,100 stock options to certain executives. The options are exercisable no sooner than December 31, 2018, and

On January 1, 2016, Fox Company granted 48,100 stock options to certain

On January 1, 2016, Fox Company granted 48,100 stock options to certain executives. The options are exercisable no sooner than December 31, 2018, and expire on January 1, 2022. Each option can be exercised to acquire one share of $3 par common stock for $9. An option-pricing model estimates the fair value of the options to be $3 on the date of grant. Suppose on January 1, 2019 half of the options are exercised when the market price of the shares is $13 each. What is the credit to Common Stock?

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