What impact will the increase of Oswald share price

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Reference no: EM132649207

Question - Oswald Inc., a public company, has granted stock options to its employees and has calculated the associated compensation expense using an options pricing model. Total compensation expense was calculated using the share price at the grant date, which was $34.12 at that time. The share price subsequently increased to $37. What impact will the increase of Oswald's share price have on compensation expense?

It will decrease by $2.88.

It will increase by $2.88.

It will have no impact.

It will decrease to zero.

Reference no: EM132649207

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