The Ratio Method refers to the manner in which strike prices and the contract unit will be adjusted in most cases for corporate actions.

Adjustment of Strike Prices

Strike prices will be adjusted and calculated as follows:

Strike prices will be rounded to the closest one hundredth of one NIS.

Adjustment of contract unit

The contract unit will be adjusted and calculated as follows:

The contract unit will be rounded to two decimal points.

Legend to the equations

E _EX – Strike price after adjustment.

E_CUM – Strike price prior to the adjustment.

M_EX – contract unit after the adjustment.

M_CUM – contract unit prior to the adjustment.

P_EX – Base price of the underlying share on the ex date.

P_CUM- Closing price of the underlying share on the trading day preceding the ex date (prior to the adjustment).  

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