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Strategies & Market Trends : Options
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To: taxman who wrote (1206)1/17/2000 10:41:00 AM
From: taxman   of 8096
 
another example regarding palm:

Distributions of property other than the underlying security may require different adjustments. For example, outstanding options might be adjusted to include the distributed property.

EXAMPLE: If XYZ "spins off" its subsidiary ABC by distributing to its stockholders 2.5 shares of ABC stock for each share of XYZ stock, outstanding XYZ options might be adjusted to require delivery of 100 shares of XYZ stock plus 250 shares of ABC stock.
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