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Kim Securities Inc. (KSI), listed on the New York Stock Exchange had 1,000,000 average shares outstanding during all of 2019. During 2019, KSI also had

Kim Securities Inc. (KSI), listed on the New York Stock Exchange had 1,000,000 average shares outstanding during all of 2019. During 2019, KSI also had 10,000 options outstanding with exercise prices of $10 each. The average stock price of KSI during 2019 was $15. For the purposes of computing diluted earnings per share, how many shares would be used in the denominator?

A) 1,003,333.

( B) 1,006,667.

C) 1,010,000

D) 1,101,000

E) None of the above

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