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Q 1 2 : A stock is trading at 1 0 1 . 3 4 $ when the company pays a 1 3 % stock

Q12: A stock is trading at 101.34$ when the company pays a 13% stock dividend. Call and put options on the stock with exercise prices of 95$ are traded on an exchange. If the exchange adjusts the terms of options for stock dividends, what must be the adjusted exercise price for the options (to the nearest cent)?

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