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An entity has1000 options outstanding with an exercise price of $1.50. The average market price per share for the period was $4.
Assume that one option converts into one share
Total value of option :1,000 *1.5 =1,500
No. of shares at full value :1,500/4 =375
NO. of shares that are dilutive :1,000 -375 =625
Thank you Faisal for answering.