effect of bonus over future and option

#1
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
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.
 

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