Terry Fox is the general manager of a professional football team, the Calgary Stampeders Team Ltd. (a Canadian public corporation). Assume that today’s date is November 15, 2022. Terry has obtained approval from the owner of the football club to offer a contract to a 27-year-old free agent player who is available to the highest bidder. In addition to an offer of a $200,000 signing bonus and a $850,000 annual salary, Terry is authorized to offer the following two items as additional compensation: A. An interest-free employee loan of $200,000 that will eventually be forgiven by the football club; and, B. A stock option to buy 50,000 common shares of Calgary Stampeders Team Ltd. Assume that on the grant date, the fair market value of the common shares is $20 per share, and that the exercise price will be $20 per Terry has asked for your advice on the following: Assuming the player will exercise all shares when the FMV is $35.00 per share and then sell the shares immediately on the open market, outline the income tax consequences with respect to the stock option and explain how this will affect the player’s net income for tax. From the player’s perspective, what, if any, are the consequences of the signing bonus and the proposed employee loan that will be forgiven in the final contract year?