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]
Q53182
Hungry for More?
Exam Prep: Series 9
The concepts behind this question are explained in-depth in Module 1, Option Basics, Section 8.0 & 8.2.
Check out NorthStar's full course for online materials, tutorial videos, and interactive quizzes and final exams. Free trial available.
Check out QStar Mastery Exams for full access to NorthStar's comprehensive question banks,
in an interactive practice exam format. Or download NorthStar's FREE mobile apps to quiz yourself, anytime, anywhere, on a limited set of questions.
Always FREE, no sign-up needed.