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CJC corp is heavily levered. Using options theory, it is estimated that a $1.00 per share drop in assets would cause an $0.80 drop in

CJC corp is heavily levered. Using options theory, it is estimated that a $1.00 per share drop in assets would cause an $0.80 drop in the stock price

CJC's stock price before the dividend is paid is $10. Using options theory, if CJC pays a dividend of $0.50 per share, what is your best estimate of the stock price after it goes ex-dividend?

A. $9.10

B. $9.50

C. $9.60

D. $10.00

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