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Sungard Company's stock is selling for $50 at the close of trading on May 3rd, 2019. On May 4th, Sungard's shares go ex-dividend. The dividend

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Sungard Company's stock is selling for $50 at the close of trading on May 3rd, 2019. On May 4th, Sungard's shares go ex-dividend. The dividend amount is $1 per share. Assume the price drop is only 90% of the dividend amount. As the manager of a tax-exempt pension fund, you decide to exploit this price differential to profit from the dividend capture strategy. Assume there is no transaction costs. Which of the following best describes your strategy? Select one: a. Purchase 1 million shares on May 3rd and hold the shares for long term investment O b. Short 1 million shares on May 3rd and buy back the 1 million shares on May 4th to close the short position. c. Purchase 1 million shares on May 3rd and sell the shares on May 4th. O d. Purchase 1 million shares on May 4th and sell the shares on May 5th

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