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Bubba held one XYZ July 30 listed call option when XYZ split 2 for 1.
What is the resulting position, Bubba has on the Option Clearing Corporation's record?
Suggested Answer: D
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long two XYZ July 15 calls. Double the number of contracts and half the strike price. This is similar to XYZ shareholders doubling the number of shares they hold at the lower price.
11 comments · newest first
MA
Marcos
1 year ago
Nope, it's definitely not D, that doesn't make sense!
DE
Denae
1 year ago
I thought it would just adjust the strike price, not double the calls.
BU
Bulah
1 year ago
Wait, how does a split change the number of calls?
DA
Dana
1 year ago
Totally agree, C is the right answer!
HU
Hubert
1 year ago
It's C, long two XYZ July 30 calls after the split.
JE
Jesusita
1 year ago
I feel like the answer has to be two calls at the same strike price, but I'm confused about the specifics of the split adjustments.
LU
Luann
1 year ago
I practiced a similar question, and I believe it was just one call that gets adjusted. But I can't recall the details.
SA
Salena
1 year ago
I'm not entirely sure, but I remember something about the strike price adjusting too. Could it be the July 15 calls instead?
AR
Arleen
1 year ago
I think after a 2-for-1 split, the number of options doubles, so maybe it's two calls?
SH
Shay
1 year ago
This is a straightforward question. The four basic data types are Float, Boolean, Long, and Date Time. I've used those in my TIBCO projects before, so I'm familiar with them.
SH
Shawnda
1 year ago
I feel pretty good about option B. Deleting the dashboard itself shouldn't delete the underlying reports, just the components within the dashboard.