10. Which of the following is true about option pricing under the Black-Scholes model for a stock that just announced its first dividend in years?

(a) call and put options are affected by dividends because the price of the stock will fall when the dividend is paid

(b) for a heavily in-the-money American call option, the dividend probably will not make much difference because holders of this option will exercise early even if there is no dividend

(c) most publicly traded options adjust for any dividends paid so there is no effect from dividends

(d) none of the above