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To: Beachbumm who wrote (12952)	1/6/1998 2:58:00 PM
From: santhosh mohan	Read Replies (3) \| Respond to of 45548

BB, Thanks for the explanation. It makes a lot of sense if the adjustment is handled the way you described it. The CBOE site was not helpful at all, and that is why I asked you. Regards.

To: Beachbumm who wrote (12952)	1/6/1998 7:13:00 PM
From: Glenn D. Rudolph	Respond to of 45548

Santhosh, I do not believe the number of contracts is adjusted; rather, the number of shares in each contract is adjusted. For example, if you owned USRX calls when it was acquired by COMS at a ratio of 1:1.75 then your USRX call (which used to represent 100 shares of USRX) represented 175 shares of COMS. Does this help? If not, always turn to the Chicago Board of Options web site. It's excellent with these sorts of questions. www.cboe.com Beachbumm, I just quoted your answer because it is correct! The ratio is exactly how it is done. Glenn