Which of the following statements about the effect of dividend payments on European call prices are true?

Select one or more

a.Payment of an unexpected dividend on a stock during the life of a European call option will result in a drop in the call price, all else remaining the same.

b.Payment of an expected dividend on a stock during the life of a European call option will result in a drop in the call price, all else remaining the same.

c.To price a European call option on a stock paying a single dividend during the life of the option,you should adjust the Black-Scholes-Merton formula by subtracting the present value of the dividend from the stock price.