The following information was extracted from Smurm Corporation's 2006 annual report:
Common stock
Share outstanding 12/31/05, 90 million
New shares issued 4/1/06, 10 million
Shares outstand 12/31/06, 100 million
Preferred stock
$10 par, 10%, convertible into 2 shares of common stock, shares
Outstanding 50 million
Options
1 million options, each to purchase one common share at $50 per share
Market price of stock
Average for year $75
Beginning of year $70
End of year $78
Preferred dividends paid $50,000,000
Net income for 2006 $350,000,000
Using the treasury stock method, the options would result in how many extra shares being recognized in the diluted EPS calculation ?