A person holds 2 XYZ APR 60 calls. What is their holding after a 2 for 1 stock split?
A) 2 XYZ APR 60 calls
B) 4 XYZ APR 30 calls
C) 2 XYZ APR 30 calls
D) 4 XYZ APR 60 calls

Name: A person holds 2 XYZ APR 60 calls. What is their holding after a 2 for 1 stock split? A) 2 XYZ APR 60 calls B) 4 XYZ APR 30 calls C) 2 XYZ APR 30 calls D) 4 XYZ APR 60 calls
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Question

Quizplus · Accepted Answer

After a 2 for 1 stock split, the number of options doubles and the strike price is halved, resulting in 4 XYZ APR 30 calls.

A Person Holds 2 XYZ APR 60 Calls