option expense question

CFA Level II FRA
#1

quick Q on option expense reporting-

I know the following but would like to understand exactly why each thing is true:

-low dividend yield means higher option expense…why? is it because all else equal, low div yield means higher stock price?

-low risk free rate means lower option expense…why? the way I remember it is- RFR lower means bonds higher and stock prices lower…but I feel like that’s not the true reason here because that doesn’t always hold…

thanks as always!!!

#2

sorry- a follow up question as well-

what are the major difs between the intrinsic value method and fair value method? the intrinsic value method confuses me because it only recognizes expense on the income statement if the market price of the stock is greater than the exercise price on the date of grant? I just can’t wrap my head around the logic here- what if the stock price changes?