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Technology Stocks : Walt Disney
DIS 106.77+2.2%Dec 1 3:59 PM EST

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To: gambler2 who wrote (794)7/10/1998 10:09:00 AM
From: Hugh W.  Read Replies (1) of 2222
 
The option split works this way. Say stock ticker symbol XYZ will do a A-B split. If you own X contracts of XYZ YYYY MM C call or put before stock split, what you get after split will be X*A/B contracts of XYZ YYYY MMM C*B/A call or put. where C is strick price, YYYY is year, and MM is month. Is this to hard to understand? Let me give you an example, say GE will going to do a 3-2 split. You have 10 GE 2001 JAN 90 calls. What you will get after split is 10*3/2=15 contracts of GE 2001 JAN 90*20/30=60 calls.(15 contracts of GE 2001 JAN 60 calls)
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Hope this will help.
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