Interesting play here EI, nice. Have you valued the pieces after the spinoff?
Mallinckrodt at 10X last year's earnings would be $27.70.
Divide that 8 = $3.46 per current COV share.
Not much unlocked value being taken into account for in any of the outstanding options that's for sure.
I assume you know how the options will be treated after the spinoff. Using your $55 strike as an example, will that then equate into 100 shares of COV and 12.5 shares of Mallinckrodt per contract?