Consider a European Put option with a strike price of $700 and maturity in five months. These options are selling for $22. The current stock price is $720. Assume you sold 5 contracts (500 options) and it is a naked position.

(a) What is the initial margin requirement?

(b) What is the Intrinsic Value of the put option?

(c) Explain how the terms of the option contract change when there is a 10% stock dividend.

(d) Explain how the terms of the option contract change when there is a 4.5% cash dividend.

(e) Explain how the terms of the option contract change when there is a 6-for-1 stock split.