Assume the same information as in BE17-19 except that Redpath purchased put options to give it the option of selling 25,000 of its own common shares for S5 each. How should the options be treated when calculating the diluted EPS?

Data From BE17-19:

Redpath Limited purchased 25,000 call options during the year. The options give the company the right to buy its own common shares for $4 each. The average market price during the year was $7 per share. Calculate the incremental shares outstanding for Redpath Limited.