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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: Brad White who wrote (4833)	1/29/1998 12:53:00 AM
From: Gerald Walls	Respond to of 74651

What happens to MSFT options on Feb 20. Do they adjust for the split or does a MSFT 145 JUL Call stay a 145 Call? One MSFT 145 JUL Call contract on 100 shares will become either two MSFT 77-1/2 JUL Call contracts on 100 shares or one MSFT 77-1/2 JUL Call contract on 200 shares. I think that on even splits (2:1, 3:1, etc) the number of contracts change while on odd splits (3:2) the number of shares under contract change. When CSCO split 3:2 the split contract was for 150 shares. What I don't know is if that changes the multiplier for the prices. That is, if the CSCO contract is listed as being $2, does that mean you pay $300 (150 x $2) or $200 (100 x $2)?