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If the Company Unexpectedly Announces It Will Pay Its First-Ever

Question 15

Multiple Choice

If the company unexpectedly announces it will pay its first-ever dividend 3 months from today,you would expect that


A) the call price would increase.
B) the call price would decrease.
C) the call price would not change.
D) the put price would decrease.
E) the put price would not change.

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