Jalisco corporation has net income of $281,000 for the year ended December 31, 2010 and common shares outstanding of 100,000. The company did not issue or repurchase additional common shares during the year. Jalisco corporation has outstanding stock purchase options authorizing the holders to acquire 32,000 shares of Jalisco corporation common stock. The exercise price of the options

was $20 while the average market price for the shares was $25.

The current tax rate applicable to Jalisco Corporation is 30%.

Jalisco corporation's basic EPS is $2.81.

What is Jalisco corporation's diluted EPS for the year ended December 31,2010