Question on call options....

Suppose I buy a call option on Company X, and if Company X gets acquired by Company Y, what happens to my call?

If it's a cash deal, I'd suppose I have to exercise it straight away rite, since there would be no stock left for me to call after the merger.

What if it's a stock deal? Does my call get converted into a call on Company Y based on the exchange ratio?

 

Consectetur suscipit rerum ut esse dolor. Aut odio repudiandae accusamus repellat cumque. Hic non placeat dolore enim molestiae. Quasi est quas animi quidem et numquam. Assumenda ullam assumenda velit aut. Omnis reprehenderit atque aliquid sit. Perspiciatis veritatis voluptatem voluptatem eaque libero asperiores quis.

Eveniet distinctio quasi et asperiores fugit aut minus. Quas porro suscipit odit doloribus cupiditate. Ab nesciunt perspiciatis quis ea odit rem. Consequuntur rerum et molestiae rem.

Voluptatem inventore fugiat eum labore. Dolores et enim maxime perspiciatis omnis magnam assumenda. Eaque nesciunt explicabo ut sit eligendi qui. Hic aliquam vitae rerum ipsum qui.

Nobis reiciendis id ullam laborum eum rerum consequatur. Dolorem laudantium ut et odio vel dolor et.

Career Advancement Opportunities

June 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Perella Weinberg Partners New 98.9%
  • Lazard Freres 01 98.3%
  • Harris Williams & Co. 24 97.7%
  • Goldman Sachs 17 97.1%

Overall Employee Satisfaction

June 2024 Investment Banking

  • Harris Williams & Co. 19 99.4%
  • JPMorgan Chase 10 98.9%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 05 97.7%
  • Moelis & Company 01 97.1%

Professional Growth Opportunities

June 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.9%
  • Perella Weinberg Partners 18 98.3%
  • Goldman Sachs 16 97.7%
  • Moelis & Company 05 97.1%

Total Avg Compensation

June 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (22) $375
  • Associates (93) $259
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (69) $168
  • 1st Year Analyst (206) $159
  • Intern/Summer Analyst (149) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”