On January 1, Year 1, Fields Corporation Granted 300,000 Stock

On January 1, Year 1, Fields Corporation granted 300,000 stock options to certain executives. The vesting period is 3 years. The options are exercisable no sooner than December 31, Year 3 and expire on January 1, Year 7. Each option can be exercised to acquire one share of $10 par common stock for $15. An appropriate option-pricing model estimates the fair value of each option to be $13 on the date of grant. What is the fair value of the award?

A) $3,900,000
B) $3,000,000
C) $900,000
D) $4,500,000