RPOWER JUN month option contracts

Hi All,

I was holding PUT option contracts of JUN month for Reliance Power on 29th May (Cum-bonus date). These contracts has been settled and closed by broker firm on 29th May itself .

As I aware that future and options contracts will get adjusted in strike price and market lot according to bonus ratio for any script.

Can you please help me out, whether my assumption is correct or not?.

Or Options contracts which are in open on cum-bonus date will get settled on the same day to 0.01 premium.

Please clarify me.

Krishna

You're right. But RPOWER case is different, as the bonus is not for every shareholder - promoters do not get bonus. Hence, it is impossible to arrive at a single value of the share due to this differential treatment. Hence, all RPOWER F&O contracts are closed by May 29 2008.