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Consider an exchanged-traded call option contract to buy 500 shares with a strike price of $50 and maturity in 3 months. What is the new

Consider an exchanged-traded call option contract to buy 500 shares with a strike price of $50 and maturity in 3 months. What is the new exercise price when there is a 25% stock dividend?

A.

$42
B.

$30
C.

$40
D.

$37.50

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