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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: Kayaker who wrote (17146)	9/17/1998 7:04:00 PM
From: freeus	Read Replies (1) \| Respond to of 77397

Thats a strange way to do business: one usually associates a contract with 100 shares????

To: Kayaker who wrote (17146)	9/18/1998 9:42:00 AM
From: Zachary Fluhr	Respond to of 77397

Bob: The reason your option contract cost 50% more than you thought is because the contract multiplier for that contract is 150 shares, not the usual 100 shares. This is because the underlying stock recently split 3 for 2. In order to make the arithmetic work out correctly for holders of the option prior to the split, the multiplier must change or the number of contracts must change. The latter occurs when the stock split is an integer (2 for 1 or 3 for 1 etc). The former occurs when (as with CSCO's 3 for 2)when the stock split is not an integer. Good trading. Zack