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To: Dr. David Gleitman who wrote (97114)2/10/1999 11:40:00 PM
From: Jeff Dickson  Respond to of 176388
 
> Now how do they adjust these contracts if there is a split?

Just like the underlying equity.



To: Dr. David Gleitman who wrote (97114)2/11/1999 4:10:00 PM
From: freeus  Respond to of 176388
 
You adjust your price for them 2 for 1 (assuming a 2 for 1 split) and the strike price is cut in half so
for the May 80 you would have twice as many May 40's bought at $5.50.
Nice, huh?
Freeus