During the year, Marly SA issued 120,000 units put options on its own shares, each obliging it to buy back one share at an exercise price of 40 (in euros). The average market price for the year is 32, below the exercise price, and the options are outstanding all year. Calculate the repurchase obligation, the number of shares assumed issued at the average price to finance it, then the incremental shares for diluted earnings.
- Put options issued
- 120,000
- Exercise price
- 40
- Average market price for the period
- 32