29) Assume a companys stock goes ex-dividend after the market closes on October 6. Compare the value of the options when the market closes on October 6 to the value of the options when the market opens on October 7. Assume all factors utilized in valuing the options (other than the dividend effect) are held constant. What will happen to the

value of the companys options?

1. the value of both calls and puts will fall
2. the value of both calls and puts will not be affected
3. the value of puts will fall while the value of calls will rise
4. the value of puts will rise while the value of calls will fall