Tomorrow if there is a split in SBIN shares then will it have an impact on the SBIN Option price and the future price ?
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The exchange provides circular in case of corporate adjustments like split or bonus.
In specific to SBIN (as you asked), please refer the following circular from NSE
http://www.nseindia.com/content/circulars/FAOP27932.pdf
Adjustments for Options Contracts:
- Strike Price: The adjusted strike price shall be arrived at by dividing the old strike price by the adjustment factor.
- Market Lot: The adjusted market lot shall be arrived at by multiplying the old market lot by the adjustment factor. The revised market lot would be 1250
Adjustments for Futures Contracts:
- Futures price: The adjusted futures price shall be arrived at by dividing the old futures price by the adjustment factor.
- Market Lot: The adjusted market lot shall be arrived at by multiplying the old market lot by the adjustment factor. The revised market lot would be 1250
For further information, read this
http://www.nse-india.com/products/content/derivatives/equities/corporate_adjustment.htm
Edit:
If you want to know what will happen to the option and future prices, they are traded afresh on the ex date, when it is going split. In the example below, you can see the option price closed at 62.9 and when split happens it became 6.3 as opening price, since the theoretical black scholes formula would yield a similar value as well the option holders would hold now 10 times more no. of contracts than what they had previous day. This opening price is first traded price by traders and not fixed by the exchange.
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To the negative voters to this answer, please specify if this is wrong or put a right answer. Just voting negative won’t help anyone
why is there so much negative voting? AastroGuru has correcly replied!
haha its funny to see 4 down arrows on a correct answer. like in the market trend continues, even here trend continues 