Use the information for the question(s) below.

Luther is a successful logistical services firm that currently has $5 billion in cash. Luther has decided to use this cash to repurchase shares from its investors and has already announced the stock repurchase plan. Currently Luther is an allequity firm with 1.25 billion shares outstanding. Luther's shares are currently trading at $20 per share.

Assume that in addition to 1.25 billion common shares outstanding, Luther has stock options given to employees valued at $2 billion. After the repurchase how many shares will Luther have outstanding?

A.

1.15 billion

B.

1.1 billion

C.

1.2 billion

D.

0.75 billion