A trader has a put option contract to sell 100 shares of a stock for a strike

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A trader has a put option contract to sell 100 shares of a stock for a strike price of $60.

What is the effect on the terms of the contract of:

(a) A $2 dividend being declared

(b) A $2 dividend being paid

(c) A 5-for-2 stock split

(d) A 5% stock dividend being paid.

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Related Book For book-img-for-question

Fundamentals Of Futures And Options Markets

ISBN: 9780134083247

9th Edition

Authors: John Hull

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Question Posted: Jul 26, 2024 08:00 AM

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A trader has a put option contract to sell 100 shares of a stock for a strike

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Fundamentals Of Futures And Options Markets

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