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ABC has 5,000 options outstanding. Each option gives the option holder the option to buy one share of stock at $8 per share. Assume the

ABC has 5,000 options outstanding. Each option gives the option holder the option to buy one share of stock at $8 per share. Assume the market price per share of stock is $10. To calculate diluted EPS, ABC uses the treasury stock method. For the above scenario, the options would be considered:

a. Dilutive

b. Antidilutive

c. Liberal

d. Conservative

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