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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (103706)	3/24/2006 12:02:22 PM
From: dave rose	Read Replies (1) \| Respond to of 132070

Yeh! Now you tell me.

To: Knighty Tin who wrote (103706)	3/25/2006 9:31:20 AM
From: re3	Read Replies (2) \| Respond to of 132070

here's a question if i may : A stock is spinning off shares of a subsidiary as a dividend in a few months. If a person sells call options in the parent stock at slightly out of the money, what happens (if anything) to those call options when the dividend transaction takes place ? The stock price of the parent company would be much lower. Are the call option strikes adjusted for this ? Or, maybe this example could be reviewed. A company trades at 100 and issues shares worth 40. Do the 100 strike call options get adjusted to 60 ? thx !