I sold rec sep 240 ce of next month.and rec is going to split on 12 sep.so option strike will also be splited? How expiry will be handaled?
For any corporate actions the adjustment is made to all the open positions such that as far as possible its value remain the same on cum and ex date.
For split in the ratio of A:B the adjustment factor will be A/B.So, for a stock undergoing split the new strike price will be arrived by dividing old strike price by the adjustment factor.
The new market lot size will be arrived by multiplying the old lot size with adjustment factor.
For any resulted fractions rounding off will happen to strike prices and lot sizes.