Question
Consider an exchange-traded call option contract to buy 200 shares with a strike price of $500 and maturity in four months. Fill in the correct
Consider an exchange-traded call option contract to buy 200 shares with a strike price of $500 and maturity in four months. Fill in the correct numbers on the underlined blank spaces. a) For a 10% stock dividend, the strike price is adjusted to $________ and the number of shares covered by one contract is adjusted to __________. a) For a 10% cash dividend, the strike price is adjusted to $________ and the number of shares covered by one contract is adjusted to __________. c) For a 10-for-1 stock split, the strike price is adjusted to $________ and the number of shares covered by one contract is adjusted to __________.
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