Throughout 2019, castpod co had 10,000 shares of common stock outstanding. their net income was $29,000. The income tax rate is 21%

On january 1, 2019, castpod co issued at face value of $50,000 of 4% bond convertible in total into 1,000 shared of Castpod Co's common stock. no bonds were converted during 2019.

Also, there were 5,000 stock options outstanding for the entire year. each option can be exercised to purchase 1 share of common stock. the exercise price was $3. the market price of the common stock averaged $30 for the year.

Compute diluted earnings per share for the year ended december 31, 2019

a. $1.97

b. $2.00

c. $2.90

d. $1.91

e. $1.87