Would a call option writer welcome an unexpected stock


1. Would a call option writer welcome an unexpected stock split? Would a call option writer welcome an unexpected dividend increase? (Assume a perfect market in both scenarios.)

2. Write down the payoff table and draw the payoff diagram (both at expiration) of a portfolio consisting of one short call with a strike price K = $60 and one long put with a strike price K = $80.

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Corporate Finance: Would a call option writer welcome an unexpected stock
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