Two weeks ago, Morris Industries declared a dividend of $1.20 a share. The ex-dividend date is tomorrow. All else constant, you would expect the opening price tomorrow morning to be:

Options:

lower by an amount approximately equal to the aftertax value of the dividend.

the same as today's closing price since the dividend is expected.

$1.20 higher than today's closing price.

higher by an amount approximately equal to the aftertax value of the dividend.