3Com Corporation (COMS) Message Board

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Technology Stocks : 3Com Corporation (COMS)

COMS 0.00130

-13.3%

Nov 7 11:47 AM EST

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To: KyrosL who wrote (38961)	2/5/2000 10:26:00 AM
From: Mort	Read Replies (2) of 45548

The answer isn't that simple. Page 20 of the booklet CHARACTERISTICS AND RISK OF STANDERDIZED OPTIONS, which we all should have received when an option account was opened states: "If XYZ 'spins off' it's subsidiary ABC by distributing to it's 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. Alternatively, the exercise prices fo the outstanding options might be reduced by the value, on a per-share basis, of the distributed property, as determined by the adjustment panel. The adjustment panel consists of two representatives of each U.S. options market on which the series is traded. I hope this clears up any confusion.

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