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QUESTION

9You own a call option and the underlying just paid a dividend of $.25 per share. What affect does it have on the price of the option?

9You own a call option and the underlying just paid a dividend of $.25 per share. What affect does it have on the price of the option?

The option decreases $25 in value.

The option decreases $.25 in value.

The option increases in value by $25.00

The option increases in value by $.25

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