A call option on 100 shares of Generous Dynamics stock has an exercise price $120.0 per share. GD declares a stock dividend of 36.0 percent. What happens to the exercise price and the number of shares underlying the option? Group of answer choices

Number of shares increases to 136.0 and the exercise price is reduced to 88.235

Nothing happens

Number of shares increases to 136.0 and the exercise price remains the same

Number of shares increases to 136.0 and the exercise price is reduced to 76.8