Qantas Airways Limited (ASX Code: QAN) Special Dividend – Adjustment Implications for QAN Exchange Traded Options (ETOs)

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Qantas Airways Limited $0.099 Special Dividend – Adjustment implications for ETOs

ASX Notice No 1027.25.09 dated 4 September 2025 outlined the adjustment method for Qantas Airways Limited (ASX Code: QAN) ETOs due to the announcement of a $0.099 special dividend and an ordinary dividend of $0.165. Both dividends will have an ex-dividend date of Tuesday, 16 September 2025.

Effective Date

The effective date of this adjustment is Tuesday, 16 September 2025.

ASX determined that the last cum-dividend VWAP based on trading on ASX markets on Monday, 15 September 2025 was $11.2838

Standard Method of Adjustment

Theoretical New Contract Size = Old Contract Size + (total special dividend paid per Old Contract Size)/(S – OD – SD)

Theoretical New Contract Size = 100 + ($0.099*100)/($11.2838-$0.165-$0.099)

=100.8984 rounded to 100 where the difference of 0.8984 will be cash adjusted based on the below formula.

Strike Factor = Old Contract Size/Theoretical New Contract Size

Strike Factor = 100/100.8984

= 0.991096

Please note that this is a non-rights style adjustment.

Cash Equalisation Adjustment Payments for Contract Size Roundings

The cash adjustment is calculated by taking the difference between the contract value of the option before and after the adjustment. Variants to the formula apply for rights style adjustments and when the adjustment occurs on the day of the option’s expiry.

Cash adjustment = (BOP * BUV) – (AOP * AUV)

Where

BUV =Before (adjustment) Unit Value = BP * BU rounded to nearest cent

AUV =After (adjustment) Unit Value = AP * AU rounded to nearest cent

BU = units per lot (multiplier) before the adjustment (old traded entity)

AU = units per lot (multiplier) after the adjustment (old traded entity)

BP = for rights style, =SP/Adjustment Factor, for non-rights style=SP.

AP = for rights style, =SP, for non-rights style=SP * Adjustment Factor.

SP = settlement price of the option if not the options expiry day, otherwise the intrinsic price (underlying price-strike price for calls, strike-underlying price for puts) if on expiry date. Refer Notes 1 and 2 below

BOP =pre-adjusted open position Refer Notes 1 and 3 below

AOP =post-adjusted open position Refer Notes 1 and 3 below

Note:

1. Cash adjustments on expiry will apply to exercised positions only.

2. The intrinsic price used for exercised positions on expiry is based on the adjusted strike price for rights style adjustments and the pre-adjusted strike price for non-rights style adjustments. Set negative intrinsic prices to zero i.e. if an out of the money is exercised, the intrinsic price and hence cash adjustment is zero.

3. Pre and post adjusted positions will be the same unless there is a position adjustment factor applied to the open position associated with the adjustment. For rights style use the start of day position (i.e. exclude any UA trading activity), for non-rights style use the (end-of-day) position prior to the adjustment.

4. Cash adjustments will also apply to LEPO positions.

5. For short positions, the result of the cash adjustment formula should have its sign reversed (multiply by -1). For non-LEPO positions the truncation approach ensures that the seller (writer) is always debited and the buyer (taker) is credited. Because the LEPO strike is usually returned to 1c after the adjustment, the holder of a short LEPO position may be credited and long position may be debited.

Refer to table below for adjusted strike and contract size

Old Size	New Size	Old Strike (Cents)	New Strike (Cents)	Exercise
100	100	1	1	E
100	100	435	431	A
100	100	455	451	A
100	100	456	452	E
100	100	475	471	A
100	100	476	472	E
100	100	495	491	A
100	100	496	492	E
100	100	520	515	A
100	100	544	539	A
100	100	545	540	E
100	100	569	564	A
100	100	594	589	A
100	100	595	590	E
100	100	600	595	A
100	100	619	613	A
100	100	620	614	E
100	100	643	637	A
100	100	644	638	E
100	100	650	644	A
100	100	651	645	E
100	100	668	662	A
100	100	669	663	E
100	100	675	669	A
100	100	693	687	A
100	100	694	688	E
100	100	700	694	A
100	100	701	695	E
100	100	717	711	A
100	100	718	712	E
100	100	725	719	A
100	100	742	735	A
100	100	743	736	E
100	100	750	743	A
100	100	751	744	E
100	100	767	760	A
100	100	768	761	E
100	100	775	768	A
100	100	776	769	E
100	100	792	785	A
100	100	793	786	E
100	100	800	793	A
100	100	801	794	E
100	100	816	809	A
100	100	817	810	E
100	100	825	818	A
100	100	826	819	E
100	100	841	834	A
100	100	842	835	E
100	100	850	842	A
100	100	851	843	E
100	100	866	858	A
100	100	867	859	E
100	100	875	867	A
100	100	876	868	E
100	100	891	883	A
100	100	892	884	E
100	100	900	892	A
100	100	901	893	E
100	100	915	907	A
100	100	916	908	E
100	100	925	917	A
100	100	926	918	E
100	100	940	932	A
100	100	941	933	E
100	100	950	942	A
100	100	951	943	E
100	100	965	956	A
100	100	966	957	E
100	100	975	966	A
100	100	976	967	E
100	100	990	981	A
100	100	991	982	E
100	100	1000	991	A
100	100	1001	992	E
100	100	1014	1005	A
100	100	1015	1006	E
100	100	1025	1016	A
100	100	1026	1017	E
100	100	1039	1030	A
100	100	1040	1031	E
100	100	1050	1041	A
100	100	1051	1042	E
100	100	1064	1055	A
100	100	1065	1056	E
100	100	1075	1065	A
100	100	1076	1066	E
100	100	1089	1079	A
100	100	1090	1080	E
100	100	1100	1090	A
100	100	1101	1091	E
100	100	1113	1103	A
100	100	1114	1104	E
100	100	1125	1115	A
100	100	1126	1116	E
100	100	1138	1128	A
100	100	1139	1129	E
100	100	1150	1140	A
100	100	1151	1141	E
100	100	1163	1153	A
100	100	1164	1154	E
100	100	1175	1165	A
100	100	1176	1166	E
100	100	1188	1177	A
100	100	1189	1178	E
100	100	1200	1189	A
100	100	1201	1190	E
100	100	1212	1201	A
100	100	1213	1202	E
100	100	1225	1214	A
100	100	1226	1215	E
100	100	1237	1226	A
100	100	1238	1227	E
100	100	1250	1239	A
100	100	1251	1240	E
100	100	1262	1251	A
100	100	1263	1252	E
100	100	1275	1264	A
100	100	1276	1265	E
100	100	1287	1276	A
100	100	1288	1277	E
100	100	1300	1288	A
100	100	1301	1289	E
100	100	1311	1299	A
100	100	1325	1313	A
100	100	1336	1324	A
100	100	1350	1338	A
100	100	1351	1339	E
100	100	1361	1349	A
100	100	1375	1363	A
100	100	1386	1374	A
100	100	1400	1388	A

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Greg Fitzpatrick, Senior Manager Clearing Operations

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Clearing Operations
clearing@asx.com.au

Notice

Qantas Airways Limited (ASX Code: QAN) Special Dividend – Adjustment Implications for QAN Exchange Traded Options (ETOs)

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