EFTA Document EFTA01393155

EXAMPLE: An Investor holds a call option covering 100 shares of XYZ stock with an exercise price of $50 resulting In an aggregate exercise price for the contract of $5,000 ($50 x 100). After a 3 for 2 split, the deliverable could be increased to 150 shares while the nominal exer- cise price remained $50. In that case, upon exercise of the adjusted option, the investor would still pay $5,000 ($50 x 100, not $50 x 150), but would receive 150 shares of XYZ stock Instead of 100. Note in the