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All main topics / Finance & Investment / Derivatives / Derivatives
145
5.An investor has exchange-traded put options to sell 100 shares for $20. There is a $1 cash dividend. Which of the following is then the position of the investor?
A.The investor has put options to sell 100 shares for $20
B.The investor has put options to sell 100 shares for $19
C.The investor has put options to sell 105 shares for $19
D.The investor has put options to sell 105 shares for $19.05
Answer: A

       Cash dividends unless they are unusually large have no effect on the terms of an option.
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Flashcard info:
Author: CoboCards-User
Main topic: Finance & Investment
Topic: Derivatives
Published: 27.10.2015

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