Question: A trader has a call option contract to sell 100 shares of a stock for a strike price of $50. What is the effect on
A trader has a call option contract to sell 100 shares of a stock for a strike price of $50. What is the effect on the terms of the contract of the following events?
(a) A $5 dividend being paid (b) A 5-for-4 stock split (c) A 10% stock dividend being paid.
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