$34$

Multiple Choice

$1\mathrm{.}5$ points

An American$-$style call option with six months to maturity has a strike price of $$42.$ The underlying stock now sells for $$50.$ The call premium is $$14.$

If the company unexpectedly announces it will pay its first$-$ever dividend four months from today, you would expect that

the put price would decrease.

the call price would not change.

the call price would increase.

the put price would not change.

the call price would decrease.

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