2007-05-19 03:41:48 · 4 answers · asked by w g 1 in Business & Finance ➔ Investing
it just means that if you have 100 shares at $100 a share then when it splits you will have 200 shares at $50 a share the company does this to contol the price so that it is not unbuyable
2007-05-19 03:46:12 · answer #1 · answered by Anonymous · 0⤊ 2⤋
The split would affect outstanding options the same way as the stock.
2007-05-19 11:13:01 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
This link explains stock splits as they pertain to options:
http://invest-faq.com/articles/deriv-option-splits.html
Options can be risky if you don't know them well. If you're already trading, you should discuss the risks with your financial professional.
2007-05-19 11:17:48 · answer #3 · answered by Dave 2 · 1⤊ 0⤋
The strike price is halved and the number of shares per option contract is doubled.
2007-05-19 21:30:31 · answer #4 · answered by Oh Boy! 5 · 1⤊ 0⤋