Consider an exchange traded call option to buy 100 shares at a strike price of $20 and maturity in three months. If t he company, on whose shares the option derivatives were based, declared a 25% stock (bonus share) dividend the terms of the option contract:

A. would be altered to a strike price of $25 and the number of shares to 80 B. would not be altered C. all options contracts on the stock would be cancelled D. would be altered to a strike price of $16 and the number of shares to 125