Options FAQ: How might corporate actions impact options?

Did you know that corporate actions like stock splits, mergers, acquisitions, and special dividends, among others, can change the terms of your options contract? These adjustments might alter the terms of the option contract and reflect a new underlying asset.

(0:31) Example: Stock Splits
(1:01) Mergers & Acquisitions
(1:32) The role of OCC (The Options Clearing Corporation)