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A trader has a put option contract to sell 1 0 0 shares of a stock for a strike price of $ 6 0 .

A trader has a put option contract to sell 100 shares of a stock for a strike price of $60. What is the eect on the terms of the contract of: (a) A $2 dividend being declared [2 Marks] (b) A $2 dividend being paid [2 Marks] (c)5-for-2 stock split [2 Marks] (d)5% stock dividend being paid [2 Marks]

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