A call option on 100 shares of Generous Dynamics stock has an exercise price $105.0 per share. GD declares a stock dividend of 32.0 percent. What happens to the exercise price and the number of shares underlying the option?

a. Number of shares increases to 132.0 and the exercise price is reduced to 79.545

b. Number of shares increases to 132.0 and the exercise price remains the same

c. Nothing happens

d. Number of shares increases to 132.0 and the exercise price is reduced to 71.4