So what does this mean? 1: The expiration date is changed/accellerated to the effective date of the plan, when the shares become worthless. 2: Since the shares now do not exist because they were cancelled, the option contract becomes 'cash only' and a cash settlement contract. 3: Call options now have a value of zero, for any exercise price, since there is no shares delivered.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.