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The following is a summary of the stock option activity at NetFlix during 2011. Options Outstanding Shares Available for Grant Number of Shares Weighted Average

The following is a summary of the stock option activity at NetFlix during 2011.

Options Outstanding

Shares Available for Grant Number of Shares Weighted Average Exercise Price

Balance Dec 31. 2010 2,038,502 2,892,130 36.11

Authorized 5,700,000 ----- -----

Granted (724,994) 724,994 154.09

Exercised ------ (659,370) 29.11

Balances Dec 31, 2011 7.013,508 2,957,754 66.59

Required:

a.How many options did NetFlix grant to employees during the year? At what price may NetFlix employees buy shares in the future for options granted during 2011?

b.How many options did employees exercise during the year?

c.When employees exercised their options during 2011, how much cash did NetFlix receive?

d.Assume that NetFlix granted options at the money during 2011. How much profit did employees make at exercise?

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