Fred holds 1000 call options on a firms shares with an exercise price of $10.00 before the firm makes a 1 for 4 bonus issue. After the bonus issue, Fred holds:

Select one:

a.

800 options with an exercise price of $12.50

b.

1000 options with an exercise price of $10.00

c.

800 options with an exercise price of $8.00

d.

1250 options with an exercise price of $8.00

e.

None of the above.