as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
system
what happens to an options contract during an all stock acquisition?
user
depends on your contract, cash or shares delivered? if shares, then you get 5     big shares. theres no longer any options. if you sell instantly, theoretically you will net the $10 difference + profit above strike. if cash, same thing just that you get cash $50 less strike.  applies to cash and stock deals options are binary, never pro-rated. if converted, basically you end up with big shares.
assistant