The following information was extracted from Slurm Corporation's 2012 annual report: 

Common stock

Shares outstanding 12/31/11 90 Million

New shares issued 4/1/12 10 Million

Shares outstanding 12/31/12 100 Million

Preferred stock

$10 par, 10%, convertible into 2 shares of common stock, shares

Outstanding 50 Million

Options

1 Million Options each to purchase one common share at $50 per Share

Market price of stock

Average for year ........... $ 75

Beginning of year ............. $ 70

End of year .............. $ 78

Preferred dividends paid ....... $50,000,000

Net Income for 2012 .........$350,000,000

Using the treasury stock method, the options would result in how many extra shares being recognized in the diluted EPS calculation:

A) 500,000

B) 358,975

C) 333,333

D) 285,714