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Adjusted Strike Price or Adjusted Exercise Price

When any capital change affects the shares subject to a stock option, the strike price and the number of shares subject to option are adjusted to reflect the change. For example, if a stock is split 3 for 2 and the original strike price of an option is $60, the adjusted strike price is $40, and the option becomes an option on 150 shares of the split stock. Strike price adjustments are uncommon in interest rate and currency option markets. See Strike.

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