Question

Crane Limited purchased 50,000 call options during the year. The options give the company the right...

Crane Limited purchased 50,000 call options during the year. The options give the company the right to buy its own common shares for $8 each. The average market price during the year was $10 per share. Assume that Crane also wrote put options that allow the holder to sell 50,000 of Crane’s shares to Crane at $11 per share.

QUESTION:

Calculate the incremental shares outstanding for Crane Limited. (Round answer to 0 decimal places, e.g. 5,275.)

Incremental shares outstanding : ________ Shares
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