The 2011 net income of Atwater Inc. was $200,000 and 100,000 shares of its common stock were outstanding during the entire year. In addition, there were outstanding options to purchase 10,000 shares of common stock at $10 per share. These options were granted in 2008 and none had been exercised by December 31, 2011. Market prices of Atwater's common stock during 2011 were January 1 $20 per share December 31 $40 per share Average Price $25 per share The amount that should be shown as Atwater's diluted earnings per share for 2011 (rounded to the nearest cent) is A) $2.00. B) $1.95. C) $1.89. D) $1.86. Please explain answer and show all work