An equity call trading on the CBOE with a strike price of $80 has its underlying stock split five for four. After the split, how many shares will the call holder have a right to exercise per contract? (Hint: for a check of your answer pretend the stock is priced at $100 with 4,000 shares outstanding before the split; check that the aggregate exercise value remains constant from before to after the split)
a.120 shares
b.175 shares
c.125 shares
d.140 shares
e.100 shares