In relation to Option 1 issued on 1 July 2006,how many shares are deemed to be issued for no consideration?

Question

Quizplus · Accepted Answer

Option 1 was issued for a total consideration of $10,000. Each option was exercisable for one share at a price of $0.80 per share. Therefore, the total number of shares deemed to be issued for consideration would be $10,000/$0.80 = 12,500. However, the total number of shares actually issued was 31,250. Therefore, the number of shares deemed to be issued for no consideration would be 31,250 - 12,500 = 18,750, which is option B.

In Relation to Option 1 Issued on 1 July 2006,how