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Company XYZ has the following information regarding its options: Number of options outstanding 1,000 Exercise price per option $15. Average market price per share during

Company XYZ has the following information regarding its options: Number of options outstanding 1,000 Exercise price per option $15. Average market price per share during the period $40.

In the calculation of the diluted EPS, the:

a) Numerator will increase by $15,000

b) Denominator will increase by 625 common shares

c) Denominator will increase by 1,000 common shares

d) Denominator will decrease by 350 common shares

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