Question: 1 . Consider an exchange - traded call option contract to buy 1 0 0 0 shares with a strike price of $ 1 6

1. Consider an exchange-traded call option contract to buy 1000 shares with a strike price of $168 and maturity in six months. Explain what happens to the stock price, and how the terms of the option contract change when there is:
a. A 5% stock dividend
b. A 5% cash dividend
c. A 4-for-1 stock split

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