Hello yall, I remember going through a question which had: 100,000 employee stock options outstanding that will be exercisable in two years. Exercise price: 40. Market price:42 on Dec 31 and averaged 38 during the year. When calulating diluted EPS we should most likely: A. Not include the option because they are antidilutive B. Not include the option because they cannot be exercised yet. The correct answer is A. I just wanted to make sure of the following: Based on the answer, Avg price = Exercise is enough to conclude that the option is antidilutive, right? IF they were dilutive, but exercisable in two years, should we include them? which brings the question, do we count dilutive EPS for the past year, today, or next financial period? how do we go about thinking about the dilutive EPS period? Much appreciated 
pffft I have just realized that the average is already given 38 -.- not 42+38/2 but let’s assume avg price=exercise, which reason has priority? exercisable in 2years or antidilutive?