The correct answer is ?reserves and surplusOutstanding Share Option: The share option outstanding is the difference between the market value and the issue price of shares granted to employees under the Employees Stock Option Scheme. For example, if employees are given shares for Rs 60 each, but the market price is Rs 100, the difference, or Rs 40, should be credited to this reserve. Important PointsAs per Schedule III of the Companies Act 2013, Share Option Outstanding Account is shown under subhead Reserves and Surplus under the head Shareholders Funds.