Pastore Inc. granted options for 1 million shares of its $1 par common stock at the beginning of the current year. The exercise price is $32 per share, which was also the market value of the stock on the grant date. The fair value of the options was estimated at $7.50 per option.

If the options have a vesting period of five years, what would be the balance in "Paid-in Capital – Stock Options" three years after the grant date?

A credit of $4.5 million.

A credit of $12.5 million.

A debit of $4.5 million.

A debit of $12.5 million