The John Company had a net income of $500,000 for the year, and 100,000 shares of common stock outstanding. john did not have any preferred stock outstanding. The Company had 10,000 stock options outstanding. The exercise price of each option is $10 a share. The average market price of common stock for the year was $5 a share, and the year-end market price was $7 a share. What is the diluted earnings per share?