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Hornets Corporation had 850,000 shares of common stock outstanding throughout the entire 2020 year. In addition, it had 150,000 stock options outstanding which had been

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Hornets Corporation had 850,000 shares of common stock outstanding throughout the entire 2020 year. In addition, it had 150,000 stock options outstanding which had been granted to key employees. The stock options give them the right to purchase one share of Hornet's stock at a strike price of $38 per share. The average market price of Hornet's common stock for 2020 was $60. What is the number of shares that should be used in computing diluted earnings per share for the year ended December 31, 2020? 850,000 945,000 905,000 1,000,000

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