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II. (15 points) Basis of Stock Options Consider an exchange-traded call option contract to buy 100 shares with a strike price of $50 and maturity

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II. (15 points) Basis of Stock Options Consider an exchange-traded call option contract to buy 100 shares with a strike price of $50 and maturity in one year months. Explain how the terms (i.e., strike price and number of shares) of the option contract change in the following scenarios: 1. \$1 cash dividend 2. 5 -for-1 stock split 3. 25% stock dividend

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