|
| Discuss effect of bonus over future and option at the Derivatives within the Traderji.com - Discussion forum for Stocks Commodities & Forex; friends, I am very new to derivatives and i have basic question of what will ... |
|
|||||||
| Notices |
| Derivatives Discuss Futures & Options in securities whose value is derived from an underlying instrument. |
 |
|
|
Thread Tools |
| Sponsored Links |
|
#1
5th February 2006, 06:01 PM
|
|||
|
|||
effect of bonus over future and option
friends,
I am very new to derivatives and i have basic question of what will happen to our position from 1 bonus decleared and alloted during contract period. 2 stock split decleared and alloted during contract period. 3 dividend decleared and alloted during contract period. if some one from this forum guid me for above points it will be great for me to trade confidently in future and option thanks 
|
|
#2
6th February 2006, 10:01 AM
|
|||
|
|||
|
Re: effect of bonus over future and option
1. If a 1:1 bonus is declared, the futures price at which you entered the contract would be halved, and your position would be doubled. In the case of options, the strike price would halve, and your position would double. For an example, go to http://nseindia.com/content/circulars/cmpt6987.htm
2. Go to http://nseindia.com/content/circulars/faop6542.htm for an example 3. No change is made for dividends. However, if the dividend is more than 10% of the stock price (extra-ordinary dividend), then the contract prices are adjusted. Refer to SCI situation is 2004.
|
| Sponsored Links |
|
|
|
| Bookmarks |
| Thread Tools | |
|
|
Similar Threads for: effect of bonus over future and option
|
||||
| Thread | Thread Starter | Forum | Replies | Last Post |
| Effect on Price on issue of Bonus Shares | Tariq Ali | Fundamental Analysis | 2 | 13th February 2008 09:59 AM |
| enquiry regarding selling an option(writing the option). | sachin divase | Options | 20 | 26th October 2007 11:50 PM |
| Interpreting future and option statistics. | sh50 | Derivatives | 1 | 4th February 2005 09:45 PM |
| Future V/s Option | sh50 | Derivatives | 3 | 21st September 2004 11:04 AM |
Indemnity, Disclaimer & Disclosure
Notice:
• By visiting Traderji.com you indicate your acceptance of our Forum
Rules Disclaimer & Disclosure and indemnify Traderji.com, its
associates and related parties of all claims howsoever resulting from
the usage of the forum.
• Disclaimer: Trading or investing in stocks & commodities
is a high risk activity. Any action you choose to take in the markets
is totally your own responsibility. Traderji.com will not be liable for
any, direct or indirect, consequential or incidental damages or loss
arising out of the use of this information.
• Disclosure: The information in this forum is neither an offer to sell nor solicitation to buy any of the securities mentioned herein.
The writers may or may not be trading in the securities mentioned.
• All names or products mentioned are trademarks or registered trademarks of their respective owners.
General Content Disclaimer Notice:
In light of our policy of encouraging candid, open exchanges of views and the rapid distribution of information originating from many sources, Traderji.com cannot determine the accuracy of information that may be uploaded to the forum. Opinions, advice and all other information expressed by participants in discussions are those of the author. You rely on such information at your own risk. You are urged to seek professional advice for specific, individual situations and not rely solely on advice or opinions given in the discussions. Since Traderji.com is an open and free discussion forum, any comments made by members of this forum in their posts reflect their own views and not of the owner or administrator of Traderji.com. Thus the owner/administrator indemnify themselves of all claims whatsoever and will not be liable or responsible for any members comments/views in this forum Traderji.com. If you find any objectionable or offensive posts made by members of this forum which you would like to bring to our notice for removal then please Contact Us.
