Thriftway Corporation reported net income of $1,000,000 in 2024 and had 120,000 shares of common stock ($1 par value) outstanding throughout the year. Also outstanding all year were 40,000 options. Each option allows the holder to purchase one share of common stock at $20 per share. The average market price of the stock during the year was $32. Thriftways 2024 diluted earnings per share is

a.

$8.33.

b.

$6.90.

c.

$7.41.

d.

$6.25.