E Effkay Well-known member Messages 299 Likes 2 Apr 21, 2008 #1 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!
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!
G grantx Senior member Messages 2,331 Likes 223 Apr 21, 2008 #2 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.
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.
