What adjustments to the contract terms of CBOE options would be made in the following situations? a.
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What adjustments to the contract terms of CBOE options would be made in the following situations?
a. An option has an exercise price of 60. The company declares a 10 percent stock dividend.
b. An option has an exercise price of 25. The company declares a two-for-one stock split.
c. An option has an exercise price of 85. The company declares a four-for-three stock split.
d. An option has an exercise price of 50. The company declares a cash dividend of $.75.
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The following adjustments would be made to the contract terms of CBOE options in each of the followi...View the full answer
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Related Book For 
Introduction To Derivatives And Risk Management
ISBN: 9780324601213
8th Edition
Authors: Robert Brooks, Don M Chance, Roberts Brooks
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