A trader has a put option contract to sell 100 shares of a


A trader has a put option contract to sell 100 shares of a stock for a strike price of $650. What is the effect on the terms of the contract of:

1. A $5 dividend being declared

2 .A $5 dividend being paid

3. A 5-for-2 stock split

4. A 5% stock dividend being paid.

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Financial Management: A trader has a put option contract to sell 100 shares of a
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