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What does a reverse split on the price of call options given you have 200000 call options and the option bid is 0.15 cents ask is 0.20 what is the final ask price?
Wiki User
∙ 14y ago
Such situations are normally dealt with using the ratio method. As 2 shares of the underlying stock now becomes 1 share with twice the value, so will 2 contracts of your call options become 1 contract at twice the strike price. In this case, you will end up with 100000 call options at twice the strike price and most probably twice the bid/ask too depending on whether the call options are in the money or out of the money.
Wiki User
∙ 14y ago
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