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The calculation of diluted earnings per share assumes that stock options were exercised and that the proceeds were used to buy treasury stock at:A. The average market price for the reporting period.B. The market price at the end of the period.C. The purchase price stated on the options.D. The stock's par value.

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Answer:

The correct answer is (A)

Explanation:

Diluted earnings per share is a technique which is used by firms and organisations to measure the equality of earning per share (EPS).  Similarly, various procedures are used to measure (EPS), the diluted earnings per share uses the average market price of the current or the reported period to buy treasury stocks to exercise stock options.

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