The following illustrates the adjustment made for stock splits (also known as share dividends or bonus shares).
XYZ Company announces a two-for-one stock split. Shareholders will receive an additional [bonus] share for each share they hold. Assuming that the closing price for XYZ shares on the trading day preceding the ex-split date is NIS 363, TASE will calculate the share price on the Ex-Date as follows:
Where:
The base price ex-split, therefore, comes to NIS 181.50
- The strike price on a Call(360) option which expires at September 08' will be adjusted from NIS 360 to NIS 180 as follows:
Strike prices on the options in each series for all expiration dates will be adjusted according to this ratio.
- The contract unit will be adjusted upward from 100 to 200 as follows:
Summary Table:
|
Option specification |
Before Adjustment |
W |
|---|---|---|
|
Strike Price |
360 |
180 |
|
Contract Unit |
100 |
200 |
|
Symbol |
XY8U36000C |
XY*U18000C |
|
Name |
XYZ C36000 SEP8 |
*XY C18000 SEP8 |
