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A network on the Internet has a sub net mask of 255.255.240.0

What is the maximum number of hosts it can handle ? 

I am confused with the concept.

In given mask there are 12 zeros, so Maximum of 2 12 = 4096 hosts are possible.

Option 1 or Option 2 ? which is correct?

Option 1 : For each subnet 0000 0000 0000 and 1111 1111 1111 are not used practically. So we have to subtract 2 from each subnet. we have 16 subnets

Hence 4096 -16 x 2 = 4064

Option 2: We have to subtract 2 from total no of hosts

Hence 4096 -2 = 4094

Which is correct? 

Please explain

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class B subnet is 255.255.0.0

but given is 255.255.240.0, i.e, 4 bits are stolen from the host .

Hence , total subnets will be ==> 2- 2 = 14 and 12 host bits are left.

So,total hosts ==>  212 - 2 = 4096 - 2 = 4094 

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