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Consider a put option contract that lets you SELL 100 shares of a company at $15 per share. Suppose a company declares a 10% cash
Consider a put option contract that lets you SELL 100 shares of a company at $15 per share. Suppose a company declares a 10% cash dividend payment, how does this affect the put option contract terms?
option contract becomes one to sell 90 shares with a strike price $16.5 | ||
option contract becomes one to sell 80 shares with a strike price $16.64 | ||
option contract becomes one to sell 190 shares with a strike price $6.5 | ||
option contract becomes one to sell 110 shares with a strike price $13.64 | ||
There is no effect |
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