4. Owl Co. has 200,000 common shares, 100,000 common stock options, and 20,000 shares of $100, 5% cumulative preferred stock, all of which were outstanding during 2018. The stock option exercise price is $10 and the average market price is $20 during 2018. Also, Owl has net income of $700,000 and declared no dividends in 2018. What is 2018 Basic and Diluted EPS, respectively? A) Basic EPS $3.00 and Diluted EPS $2.00 B) Basic EPS $3.50 and Diluted EPS $2.80 C) Basic EPS $3.50 and Diluted EPS $2.50 D) Basic EPS $3.00 and Diluted EPS $2.40