The exercise price of listed options is not adjusted for:
I. Stock splits
II. Rights offerings
III. Stock dividends
IV. Cash dividends
II and IV. The exercise price of listed options is not adjusted for rights offerings or cash dividends. [Module 1, Option Basics, Section 8.0 & 8.2]
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Exam Prep: Series 9
The concepts behind this question are explained in-depth in Module 1, Option Basics, Section 8.0 & 8.2.
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