1. During all of 2017, Quick Inc. had 800 shares of common stock outstanding and 200 stock options outstanding. Each stock option allows the holder to purchase one share of Quick common stock at $10 per share. Quicks common stock price information is shown below:

Date Price

January 1, 2017 $15

December 1, 2017 $35

Average for 2017 $22

None of the options were exercised during 2017. To the nearest whole share, the total number of shares to be used in computing diluted EPS for 2017 is

1. 867
2. 891
3. 909 = 800 + 200 (200 x $10)/22 = 800 + 200 - 91 <-------------answer
4. 943
5. 1000

Can someone help me with this question? the answer is already given But I wanna know why we add 800 to 200 and . I'm also confused on where the "(200 x 10)/22" part came from.

Can someone explain to me.? I just want to have a better understanding. thanks in advance!