What Is an Example of a Corporate Action That Adjusts the Strike Price? ▴ Learn

What Is an Example of a Corporate Action That Adjusts the Strike Price?

A stock split is a common example of a corporate action that adjusts the strike price. If a stock undergoes a 2-for-1 split, the option contract's strike price is typically halved, and the number of contracts or shares per contract is doubled to maintain the option holder's total value.

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