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REDDIT

Option and proposed merger

T
Feb 19, 2025 · 13:42

I'm by no means expert so excuse me if I'm using wrong verbiage.

Say you have put options with option to sell stock at $100 p/s which expires in one year from today.

Say a company proposes to buy that particular company within 3 months for $50. And the purchase is approved and imminent.

Am I correct this has no relevance to options. That up until the actual acquisition date I can exercise my options and get the $100 p/s.

Thank you.