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Derivatives Consider an exchange-traded call option contract to buy 500 shares with a strike price of $40 and maturity in four months. Explain how the

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Derivatives

Consider an exchange-traded call option contract to buy 500 shares with a strike price of $40 and maturity in four months. Explain how the terms of the option contract change when there is a) A 10% stock dividend b) A 10% cash dividend c) A 4-for-/ stock split

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