Consider an exchanged-traded call option contract to buy 100 shares with a strike price of $30 and

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Consider an exchanged-traded call option contract to buy 100 shares with a strike price of $30 and maturity in 7 months. What is the new exercise price when there is a 6-for-1 stock split?

	A.	$6
	B.	$150
	C.	$30
	D.	$5

Related Book For answer-question

Introduction to Finance Markets Investments and Financial Management

ISBN: 978-1118492673

15th edition

Authors: Melicher Ronald, Norton Edgar

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Posted Date: Nov 22, 2022 07:23 AM

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Consider an exchanged-traded call option contract to buy 100 shares with a strike price of $30 and

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Answer D 5 The new exercise price is 5 The strike price is not affecte... View the full answer

Introduction to Finance Markets Investments and Financial Management

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