Question 5 (20 points) Consider an exchange-traded call option contract to buy 500 shares with a strike price of $40 and maturity in four months. The option premium is $1,000. a) Explain how the terms of the option contract change when there is (i) A 10% stock dividend (ii) A 4-for-1 stock split (10 marks) b) If the market price of the shares goes to $50 at maturity immediately before the stock dividend or split in part (a) takes effects, show that the actions in (a) ould not affect the profit of purchasing the option. (10 marks)