A 2-for-1 stock split will have what effect upon the following items?

Question

Quizplus · Accepted Answer

A 2-for-1 stock split will have no effect on the exercise price of option contracts, so Option A is not affected.

Answer: B) Option B 
 A 2-for-1 stock split will have a proportional effect on the number of shares underlying option contracts, so Option B will be adjusted accordingly. The investor will have twice as many contracts at half the strike price.

Answer: C) Option C 
 A 2-for-1 stock split will have no effect on the expiration date of option contracts, so Option C is not affected.

Answer: A,B,C 
 Only option B is affected by a stock split. Therefore, the best choice is A,B,C.

A 2-For-1 Stock Split Will Have What Effect Upon the Following