The objective of the course is to introduce how and when adjustments are made to an option contracts standard terms, who determines the adjustment amounts and the importance of the various dates of when adjustments occur. The course will also review option contracts that are a result of corporate action that will impact options such as; stock splits, special dividends and distributions, mergers and acquisitions.
Fundamental and Intermediate students
"Contract Adjustments" will cover adjustments that are typically made to option contracts as a result of a corporate action. Some examples of a corporate action include: when the underlying stock undergoes a stock split, pays a special cash and/or stock dividend or distribution, or is involved in a merger, acquisition or corporate reorganization.