Question
Consider a 6-month European call option to trade 100 shares of ABC company at price $60 per share for $1.5. Suppose that ABC company makes
Consider a 6-month European call option to trade 100 shares of ABC company at price $60 per share for $1.5. Suppose that ABC company makes a 3-for-1 stock split. What will be the new terms of option contract for the short call?
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International Financial Management
Authors: Cheol Eun, Bruce G. Resnick
8th edition
125971778X, 978-1259717789
