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Abbott Laboratories Message Board

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  • bgv123 bgv123 Dec 20, 2012 9:29 PM Flag

    I NEED A QUESTION ANSWERED

    I don't believe they will simply cut the strike price in half. I believe they will allocate the strike price pro rata between their relative valuations. For example, today the "when issued" shares of ABBV closed at $34.32. Meanwhile ABT closed at $65.55. Thus, the market is impliedly valuing the "new" ABT at about $31.23. If the split occured tomorrow morning, I believe the value of your options would be roughly 34/31 as a ratio of value between ABBV/ABT. Does that make sense?

 
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