CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

How are stock options treated when diluted earnings per share is computed?
A. Stock options are considered only if they are dilutive.
B. Stock options are considered only if they were exercised.
C. Stock options are considered only if they are antidilutive.
Explanation: Stock warrants and options are only considered if they dilute the earnings available to common shareholders.

User Contributed Comments 3

User Comment
swift won't stock options always be dilutive? if they are exercised its because x < average price?
monteleone They will only be dilutive if they will add to the number of shares outstanding. The options could possibly be converted into other "securities"
rrichmondo If they could be converted into other securities, why would they be called 'stock' options ?
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