A Firm Had 8,000 Common Shares Outstanding at the End

A firm had 8,000 common shares outstanding at the end of the current period and earned $8,000 that period (net of tax) .Also,options to purchase 5,000 shares at $5 each were outstanding all year.For the entire year the firm had $20,000 of 6% debt and $10,000 of 8% debt outstanding.The 8% debt is convertible into 500 common shares.The firm earns interest at 7 percent and has a 50 percent tax rate.The diluted earnings per share for the current year should be (rounded to the nearest cent) :

A) $1.00
B) $0.69
C) $0.65
D) $0.72