To Adjust for Stock Splits

question 21

Multiple Choice

To adjust for stock splits

• A) the exercise price of the option is reduced by the factor of the split, and the number of options held is increased by that factor.
• B) the exercise price of the option is increased by the factor of the split, and the number of options held is reduced by that factor.
• C) the exercise price of the option is reduced by the factor of the split, and the number of options held is reduced by that factor.
• D) the exercise price of the option is increased by the factor of the split, and the number of options held is increased by that factor.

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