Thanks much, your further explanation made me look deeper at my account and it has become clear what happened. I did expect the adjustment and it happened as you say, except that, for no reason I can come up with, I had received 32 shares of SPH but only 30 of which had been called back when my option was exercised. The 2 shares that remained in my account I sold shortly after and forgot about them. At expiration the cash in lieu I received of SPH AND the value of those two SPH shares were taken. When I saw three times the cash in lieu amount I received was taken I thought there was a problem, having forgot about the extra 2 shares so you and my brokerage (ML) are correct.
Thanks again for your help.
FYI, we've had an ML account for many years and in general, trading goes well, however, to call support is a nightmare! Maybe we're on a "place on hold" list because, even for the simplest question, we get put on hold for about 45 mins. and, if it needs a higher level, as long or longer for each pass along. Just thought I'd explain why I went the forum route before calling ML.