78 Dividends stock splits (continued) Consider a call option to buy 100 shares for $20/share How should terms be adjusted for a 2-for-1 stock split? for a 5 stock dividend? Options, Futures, and other Derivatives, 5th edition 2002 by John C. HullOptions, Futures, and Other Derivatives, 5th edition © 2002 by John C. Hull 7.8 Dividends & Stock Splits (continued) • Consider a call option to buy 100 shares for $20/share • How should terms be adjusted: – for a 2-for-1 stock split? – for a 5% stock dividend?