Q: I have many "in the money" June/July/Sept.2025 calls on Veren. Please provide any information on what will happen to them now that there is a merger with Whitecap. Thank you Gordo.
5i Research Answer:
We have comments on the deal posted now. In such instances, the strike price of the options will be adjusted to reflect the terms of the merger. For example at a 1.05 WCP ratio for 1.00 VRN, the strike price of a VRN contract would be adjusted down by 5%.