Exercise price and the number of shares underlying option

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Reference no: EM131312705

A put option on 100 shares of Generous Dynamics stock has an exercise price $115.0 per share. GD declares 4.0-for-1 stock split. What happens to the exercise price and the number of shares underlying the option?

a. Number of shares is reduced to 25.0 and the exercise price is increase to 460.0

b. Nothing happens

c. Number of shares increases to 400.0 and the exercise price is reduced to 28.75

d. Number of shares increases to 400.0 and the exercise price remains the same.

Reference no: EM131312705

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