A trader has a call option contract to buy 100 shares of a, Ask an Expert

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A trader has a call option contract to buy 100 shares of a stock for a strike price of $60.

What is the effect on the terms of the contract of:

(a) A $2 dividend being declared

(b) A $2 dividend being paid

(d) A 5% stock dividend being paid.

Please explain each one in detail and please so work if needed.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92824741

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