Matt Berry started as the CEO of Hastings Ltd on 1 May 2015. Part of his remuneration package is the entitlement to 500,000 $1.80 call options at $0.30 per option. The options expire at 30 June 2019. Matt cannot exercise the option until after 30 June 2018. The market price of Hastings' shares was $1.00 per share on 1 May 2015. On 1 May 2019, the market price of Hastings' shares was $2.00 and Matt decided to exercise all his options and acquire the shares in Hastings. Required: a) Account for the issue and exercise of the options in Hastings Ltd. Narrations are not required. (6 marks) b) Explain what would have happened if the share price on 1 May 2019 had been $1.50 instead of $2.00, and why. How would Hastings Ltd account for this, and which accounting standard and paragraph tells us this. (4 marks) Critical Thinking Question: Stock options are usually regarded as bad for the public. See for example Lou Dobbs, a US financial commentator, (see: https://www.youtube.com/watch?v=VtysMIm-3pc), Using the AREA framework, provide arguments for why stock options could also be seen as good for the public. Conclude whether you are pro or against the use of stock options in executive compensation packages. ANALYSE (30-50 words): Identify the issue and why it matters. Determine what you need to find out.