Question: The treasury stock method, applied to written call options and equivalents, assumes that the options/warrants or equivalents are exercised at the end of the year.

The treasury stock method, applied to written call options and equivalents, assumes that

the options/warrants or equivalents are exercised at the end of the year.

the options/warrants or equivalents are exercised at the beginning of the year.

the proceeds are used to purchase common shares for the treasury at the market price.

the proceeds are used to purchase preferred shares for the treasury at the average market price that exists during the year.

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