1. A South Jersey marketing manager is awarded 10,000 options with a strike price of $3.50 per share. She exercises her options when the company's share price reaches $27.00. She then promptly sells her shares. See Ch 01 Lecture 1 for hints. a. What is her cost to exercise the options? b. What are her net proceeds from these transactions? c. What is her profit from the exercise and sale of options? 2. Floric Corporation has 400,000 common shares issued and outstanding. It also has 200,000 options outstanding with a strike price of $4.00. Its current share price is $20.00 per share. Compute its fully diluted shares. See Ch 01 Lecture 1 for hints. 3. Pender Corporation has 500,000 common shares issued and outstanding. It has $2,000,000 of convertible preferred outstanding. It can be converted to common stock at the rate of 100 shares per $1,000 of Preferred. The current share price is $19.50. Compute its fully diluted shares. See Ch 01 Lecture 1 for a hint