On 1 July 2013 Diamond Ltd Granted 800 Share Options

Multiple Choice

On 1 July 2013 Diamond Ltd granted 800 share options with an exercise price of €35 to the CFO, conditional on the CFO remaining in employment with the company until 30 June 2016. The exercise price will drop to €30 if Diamond's earnings increase by an average of 8% per year over the three year period. On 1 July 2013 the estimated fair value of the share options with an exercise price of €35 is €10 per option, and if the exercise price is €30, the estimated fair value of the options is €12 per option. During the year ended 30 June 2014 Diamond's earnings increased by 10% and they are expected to continue to increase at this rate over the next two years.
During the year ended 30 June 2015 Diamond's earnings increased by 5% and Diamond management expected that the earnings target would be achieved.
During the year ended 30 June 2016 Diamond's earnings increased by 11%.
When calculating the remuneration expense to be recognised for the year ended 30 June 2015 which of the following dollar values should be included in the calculation?

A) €10
B) €12
C) €30
D) €35