The Options Box

[streetshooter]

bbgold:

Hi bud,

Have a question for you or any of your option friends.
KP, posted over on BTS, and asked a interesting question regarding put options during a BK. As stated before i dabble with options for hedging purposes mainly, but lately has a shorting techiqnue. But couldnt answer his question. Was hoping one of you guys could help.

Here is his post:
Shooter~wcom @ $ .35 on fraud issues...EBIDTA over stated by $3.5B... defaults make new money less likely and BK more so

hence my option question... how would a BK affect the put contracts? ie how does BK affect the existing options?


TIA

Shooter