Acal Corporation has stock options outstanding, which allow option holders to buy 100,000 shares of common stock at $60 per share. The average market price of the common stock is $75 for the year. The entity reports earnings of $560,000 and has common shares outstanding of 280,000 shares. No potentially dilutive securities other than the stock options are outstanding. Acai Corporation's diluted earnings per share should be: $1.87 O $1.80 O $1.55 $2.00 $1.98