Your Beloved Machine's current stock price is $96.If YBM December 90 calls trade for $6 and the stock has a 3 for 2 split,then the following will happen:

Question

Quizplus · Accepted Answer

In a 3 for 2 stock split, every 2 shares owned before the split are converted into 3 shares. If the stock price was $96 before the split, the new stock price after the split is calculated by dividing the old price by the split ratio (3/2), resulting in a new price of $64 ($96 * 2/3). Similarly, the strike price of the options adjusts in the same way, changing the $90 strike price to $60 ($90 * 2/3). Additionally, the number of shares each contract represents is adjusted to maintain the contract's value, changing from 100 shares to 150 shares (100 * 3/2).

Your Beloved Machine's Current Stock Price Is $96