XM Merger and call options?

Question

I have sold 3 $15 call options on XMSR dated dec 22, 2007 ( I also own the underlying 300 shares). What happens to the options if the merger goes through before they expire since the shares technically no longer exist?

Answer 1

The options will be adjusted to, upon assignment, require the delivery of the same thing you received for your 300 shares in the merger.

For examples of previous options adjustments you can go to

http://www.cboe.com/tradtool/contracts.aspx

and select previous adjustments.