# Treasury-Share Method for Options/Warrants

`D46-F02-A03` · Earnings and Per-Share Analytics → Basic and Diluted EPS · archetype `record-transform` · difficulty 3/5 · verification **contract**

Full page: https://docs.thefintechbuilder.com/earnings-and-per-share-analytics/basic-and-diluted-eps/treasury-share-method-for-options-warrants/
Agent skill: `npx skills add IslamBaraka90/Fintech-Algorithms-Library` — https://docs.thefintechbuilder.com/guides/agent-skill/

## Install and import

```bash
npm install fintech-algorithms
```

```ts
import { calculateTreasuryShareMethod } from "fintech-algorithms/earnings-and-per-share-analytics/basic-and-diluted-eps/treasury-share-method-for-options-warrants";
```

## Signature

```ts
calculateTreasuryShareMethod(input)
```

The treasury share method for options and warrants: assume exercise, assume the proceeds buy back shares at the average market price, count only the net new shares. Using the period-end price instead of the average is the standard error, and it changes the answer.

## Parameters

| Name | Type | Required | Notes |
| --- | --- | --- | --- |
| `input` | `TreasuryShareInput` | yes | Instrument terms with `period_application` — instruments outstanding for part of the period are weighted for that part only, not counted in full. |

## Returns

`{ metric, instrument_type, incremental_shares, dilutive, diluted_eps, … }`

The incremental share count and the dilution determination, with every intermediate the calculation passed through.

## Errors

- When the average market price is missing or not positive — reported as a status rather than thrown

## Complexity

Time `O(1)`, space `O(1)`.

## Worked example

Captured by running this function on the input its own test provides. Real output of real code — but not asserted against a published figure.

### Input

`input`:

```json
{
  "entity_id": "EXAMPLE-PLC",
  "instrument_id": "2024-WARRANTS",
  "instrument_type": "WARRANT",
  "period_start": "2025-01-01",
  "period_end": "2025-12-31",
  "as_of": "2026-02-20T16:30:00Z",
  "accounting_framework": "IFRS",
  "period_application": "IFRS_DIRECT_PERIOD",
  "currency": "USD",
  "basic_control_numerator": "120",
  "basic_weighted_average_shares": "50",
  "earnings_scale": "1000000",
  "share_scale": "1000000",
  "ordinary_shares_under_instrument": "10"
}
```

Showing 14 of 51 fields.

### Call

```ts
calculateTreasuryShareMethod(input)
```

### Returns

object with 53 fields: metric, entity_id, instrument_id, instrument_type, period_start, period_end, as_of, accounting_framework, …

```json
{
  "metric": "treasury_share_method_options_warrants",
  "entity_id": "EXAMPLE-PLC",
  "instrument_id": "2024-WARRANTS",
  "instrument_type": "WARRANT",
  "period_start": "2025-01-01",
  "period_end": "2025-12-31",
  "as_of": "2026-02-20T16:30:00Z",
  "accounting_framework": "IFRS",
  "period_application": "IFRS_DIRECT_PERIOD",
  "currency": "USD",
  "basic_control_numerator_base": "120000000",
  "basic_weighted_average_shares_base": "50000000",
  "shares_under_instrument_base": "10000000",
  "cash_exercise_price_per_share": "15"
}
```

Showing 14 of 53 fields.

## Verification and provenance

Tier: **contract**.

The module loads, the entry point is callable and its declared signature matches the compiled code. The example below is real captured output, but no independently published figure asserts the numbers.

Both tiers guarantee the signature. Full explanation: https://docs.thefintechbuilder.com/guides/verification/

Generated from the docs.json payload shipped inside fintech-algorithms@0.13.1.
The signature and parameter list are checked against the compiled implementation at build time,
so a description that contradicts the code fails the build rather than reaching this file.

## Links

- Article (how it works, step by step): https://thefintechbuilder.com/earnings-and-per-share-analytics/basic-and-diluted-eps/treasury-share-method-for-options-warrants/
- Implementation source: https://github.com/IslamBaraka90/Fintech-Algorithms-Library/blob/main/src/earnings-and-per-share-analytics/basic-and-diluted-eps/treasury-share-method-for-options-warrants/impl.ts
- Package on npm: https://www.npmjs.com/package/fintech-algorithms
- Domain index for agents: https://docs.thefintechbuilder.com/earnings-and-per-share-analytics/llms.txt