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Strategies & Market Trends : Options

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To: Eylon who wrote (892)1/10/2000 1:43:00 PM
From: edamo  Read Replies (1) of 8096
 
eylon...re aol/twx

if the deal is 1.5 twx for 1 aol share, with no caps, then on the day of settlement the twx will convert at that ratio regardless of aol price. similar situation was aol/nscp...closer it gets to finality, the less the spread of share price is....it will eventually lock in at the 1.5 ratio. again as in nscp, the twx option will become an "new" aol option symbol with the 1.5 ratio built in.
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