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Consider an exchange-traded call option contract to buy 500 shares with a strike price of $33 and maturity in four months. Explain how the option
Consider an exchange-traded call option contract to buy 500 shares with a strike price of $33 and maturity in four months. Explain how the option contract terms (number of shares per contract and strike price) change when there is (a) a 4-for-1 stock split, (b) a 10% cash dividend, and (c) a 10% stock dividend (10% increase in the number of outstanding shares).
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