Aggregate value remains constant from before to after split

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Reference no: EM131585288

An equity call trading on the CBOE with a strike price of $80 has its underlying stock split five for four. After the split, how many shares will the call holder have a right to exercise per contract? (Hint: for a check of your answer pretend the stock is priced at $100 with 4,000 shares outstanding before the split; check that the aggregate exercise value remains constant from before to after the split)

a.120 shares

b.175 shares

c.125 shares

d.140 shares

e.100 shares

Reference no: EM131585288

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