An Investor Has Exchange-Traded Put Options to Sell 100 Shares

question 19

Multiple Choice

An investor has exchange-traded put options to sell 100 shares for $20.There is 25% stock dividend.Which of the following is the position of the investor after the stock dividend?

• A) Put options to sell 100 shares for $20
• B) Put options to sell 75 shares for $25
• C) Put options to sell 125 shares for $15
• D) Put options to sell 125 shares for $16

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