What Happens to an Option If the Underlying Stock Has

Multiple Choice

What happens to an option if the underlying stock has a 3-for-1 split?

A) There is no change in either the exercise price or in the number of options held.
B) The exercise price will adjust through normal market movements; the number of options will remain the same.
C) The exercise price would become one-third of what it was, and the number of options held would triple.
D) The exercise price would triple, and the number of options held would triple.