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3. Answer the following questions with reasoning in details. (2x 8 points) Mark (1) Consider an exchange-traded put option contract to buy 200 shares with

3. Answer the following questions with reasoning in details. (2x 8 points) Mark (1) Consider an exchange-traded put option contract to buy 200 shares with a strike price of $24 and maturity in 3 months. Explain how the terms of the option contract change when there is (a) a 20% stock dividend; and (b) a 2-for-1 stock split. (2) A stock option is on a February, May, August, and November cycle. What options trade on (a) April 1, and (b) May 30

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