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(EPS with Options, Various Situations) Venezuela Company's net income for 2020 is $50,000. The only potentially dilutive securities outstanding were 1,000 options issued during 2019,

(EPS with Options, Various Situations) Venezuela Company's net income for 2020 is $50,000. The only potentially dilutive securities outstanding were 1,000 options issued during 2019, each exercisable for one share at $6. None has been exercised, and 10,000 shares of common were outstanding during 2020. The average market price of Venezuela's stock during 2020 was $20.

Question:

(a)Compute diluted earnings per share. (Round to nearest cent.)

Assume the same facts as (a) except that the exercise price is $60/share and the avg market price is $20/share

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