Would a call option writer welcome an unexpected stock split

Reference no: EM131243390

1. Would a call option writer welcome an unexpected stock split? Would a call option writer welcome an unexpected dividend increase? (Assume a perfect market in both scenarios.)

2. Write down the payoff table and draw the payoff diagram (both at expiration) of a portfolio consisting of one short call with a strike price K = $60 and one long put with a strike price K = $80.

Reference no: EM131243390

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