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A put option on 100 shares of Generous Dynamics stock has an exercise price $150.0 per share. GD declares 6-for-1 stock split. What happens to
A put option on 100 shares of Generous Dynamics stock has an exercise price $150.0 per share. GD declares 6-for-1 stock split. What happens to the exercise price and the number of shares underlying the option?
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Number of shares increases to 600.0 and the exercise price is reduced to 25.0
Number of shares is reduced to 16.667 and the exercise price is increase to 900.0
Nothing happens
Number of shares increases to 600.0 and the exercise price remains the same
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