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Non-Tech : PEP -- Time to buy?
PEP 142.850.0%3:59 PM EST

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To: Gary L Schultz who wrote (193)7/30/1997 12:41:00 PM
From: Kelly Sheppard   of 392
 
Gary, you said in your response that after the split that "they would adjust..." the strike price.

I know how options work... I actively trade them. I'm not talking about how to value an option (strike price, time, volatility, interest rates, etc.), I'm talking about the strike price being adjusted. I don't know that this will happen, but what I'm saying is that if I had 1 call on PEP for $40.00, what would this look like after the spin-off?
ie. 80 shares of PEP + 20 shares of TRICON for a sum of $40.00?
or
80 shares of PEP @ $30.00 (or some adjusted strike price) and
20 shares of TRI @ $10.00 (again, some adjustment method used).
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