Question: If a company has options whose exercise price is less than the average market price of common shares: A. The numerator of the diluted profit

If a company has options whose exercise price is less than the average market price of common shares:

A. The numerator of the diluted profit will be greater than that of the basic profit. B. The numerator of the diluted profit will be less than that of the basic profit. C. The denominator of the diluted profit will be greater than that of the basic profit. D. The denominator of the diluted profit will be less than that of the basic profit.

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