I don´t understand why 600,000 are free shares as the oustanding shares at year end are 4,000,000. Secondly I don´t know where 2,400,000 comes from and why this figure is substracted from the outstanding options.
I attempted example 5 where I find the same issue. I´m sure once this question is answered I will understand diluted workings in example 5 also.
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