Rights issue

This is a discussion on Rights issue within the Options forums, part of the Financial Markets category; Hi guys, Hopefully a quick one, can anyone tell me how a rights issue affects options prices please? (No prizes ...

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Rights issue

Hi guys,

Hopefully a quick one, can anyone tell me how a rights issue affects options prices please?

(No prizes for guessing which stock I'm thinking of)

Cheers!
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Effkay,

The number of underlying shares per contract will be adjusted correspondingly as will the premiums (presumably). You shouldn't be better or worse off.

Grant.
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Effkay started this thread Thanks grant!
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Anytime.

Grant.
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