Lloyd Is the CFO for a fiRm That Uses ISOs

Multiple Choice

Lloyd is the CFO for a firm that uses ISOs as part of its executive compensation plan. He receives $150,000 annually, paid semimonthly, in base salary plus 25 shares of the firm's stock per month. The stock is omitted from gross pay calculations and is valued at $52.50 per share and he
May exercise his option within five years at $0.10 per share. What is Lloyd's gross pay for mid-October?

A) $6,250
B) $7,250
C) $8,250
D) $7,560