What happens to an option’s value when the company pays stock dividends? Consider a put option to sell 100 shares of a c

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What happens to an option’s value when the company pays stock
dividends? Consider a put option to sell 100 shares of a company
for $45 per share. What happens to the put option if the company
declares a 20% stock dividend? Discuss how the terms of the option
will change – if it changes. If not, discuss how it affects the
value of the option. (Note: I am referring to stock dividends, not
the usual cash dividends on stocks.)