Navajo Ltd Have the Following Options on Issue as at 30

Navajo Ltd have the following options on issue as at 30 June 2009: $$\begin{array} { | l | l | l | l | } \hline & \begin{array} { l } \text { I: } \\\text { Option issued } \\1 \text { July } 2006\end{array} & \begin{array} { l } \text { II: } \\\text { Option issued } \\1 \text { July } 2007\end{array} & \begin{array} { l } \text { III: } \\\text { Option issued } \\1 \text { July } 2008\end{array} \\\hline \text { Number of options } & 100000 & 200000 & 300000 \\\hline \text { Exercise price } & \$ 2.60 & \$ 3.30 & \$ 4.50 \\\hline \text { Expiry date } & 30 \text { June } 2010 & 30 \text { June } 2012 & 30 \text { June 2013 } \\\hline\end{array}$$ The close price for Navajo Ltd shares was $3.35 and the average market price for the period was $3.20.
In relation to Option 1 issued on 1 July 2006,how many shares are deemed to be issued for no consideration?

A) Nil
B) 18 750
C) 22 388
D) 100 000