AppliedMultiple choice
How are listed equity options typically adjusted for dividends?
- AEvery dividend, ordinary or special, reduces the strike by the dividend amount on the ex-date
- BOrdinary dividends are not adjusted for; large special dividends usually are
- CNo dividend is ever adjusted for, because option holders do not own the stock
- DCalls are adjusted for dividends and puts are not, since only calls lose value on ex-dates
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