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Notice

Boral Limited (ASX Code: BLD) Special Dividend – Adjustment Implications for BLD Exchange Traded Options (ETOs)

What's this about:

Notice reference number: 0389.24.04

Date published: 16/04/24

Effective as of: 17/04/24

Last updated: 16/04/24

Boral Limited $0.26 Special Dividend – Adjustment implications for ETOs

ASX Notice No. 0178.24.02 dated 12 April 2024 outlined the adjustment method for Boral Limited (ASX Code: BLD) ETOs due to the announcement of a $0.26 special dividend, the ex-dividend date is Wednesday, 17 April 2024.

Effective Date

The effective date of this adjustment is Wednesday, 17 April 2024.

ASX determined that the last cum-dividend VWAP based on trading on ASX markets on Tuesday, 16 April 2024 was $5.9931

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 + ($0.26*100)/($5.9931-$0.00-$0.26)

=104.5351 rounded to 104 where the difference of 0.5351 will be cash adjusted based on the below formula.

Strike Factor = Old Contract Size/Theoretical New Contract Size

Strike Factor = 100/104.5351

= 0.956616

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	104	1	1	E
100	104	200	191	A
100	104	220	210	A
100	104	221	211	E
100	104	240	230	A
100	104	241	231	E
100	104	260	249	A
100	104	261	250	E
100	104	280	268	A
100	104	281	269	E
100	104	300	287	A
100	104	301	288	E
100	104	320	306	A
100	104	321	307	E
100	104	330	316	A
100	104	340	325	A
100	104	341	326	E
100	104	350	335	A
100	104	360	344	A
100	104	361	345	E
100	104	370	354	A
100	104	371	355	E
100	104	380	364	A
100	104	381	365	E
100	104	390	373	A
100	104	391	374	E
100	104	400	383	A
100	104	401	384	E
100	104	410	392	A
100	104	411	393	E
100	104	420	402	A
100	104	421	403	E
100	104	430	411	A
100	104	431	412	E
100	104	440	421	A
100	104	441	422	E
100	104	450	430	A
100	104	451	431	E
100	104	460	440	A
100	104	461	441	E
100	104	470	450	A
100	104	471	451	E
100	104	480	459	A
100	104	481	460	E
100	104	490	469	A
100	104	491	470	E
100	104	500	478	A
100	104	501	479	E
100	104	525	502	A
100	104	526	503	E
100	104	550	526	A
100	104	551	527	E
100	104	575	550	A
100	104	576	551	E
100	104	600	574	A
100	104	601	575	E
100	104	625	598	A
100	104	626	599	E
100	104	650	622	A
100	104	651	623	E
100	104	675	646	A
100	104	676	647	E
100	104	700	670	A
100	104	701	671	E
100	104	725	694	A
100	104	750	717	A
100	104	751	718	E
100	104	775	741	A
100	104	800	765	A
100	104	801	766	E
100	104	850	813	A

Need more information?

Issued by

Greg Fitzpatrick, Senior Manager Clearing Operations

Contact information

Clearing Operations
clearing@asx.com.au

Old Size	New Size	Old Strike (Cents)	New Strike (Cents)	Exercise
100	104	1	1	E
100	104	200	191	A
100	104	220	210	A
100	104	221	211	E
100	104	240	230	A
100	104	241	231	E
100	104	260	249	A
100	104	261	250	E
100	104	280	268	A
100	104	281	269	E
100	104	300	287	A
100	104	301	288	E
100	104	320	306	A
100	104	321	307	E
100	104	330	316	A
100	104	340	325	A
100	104	341	326	E
100	104	350	335	A
100	104	360	344	A
100	104	361	345	E
100	104	370	354	A
100	104	371	355	E
100	104	380	364	A
100	104	381	365	E
100	104	390	373	A
100	104	391	374	E
100	104	400	383	A
100	104	401	384	E
100	104	410	392	A
100	104	411	393	E
100	104	420	402	A
100	104	421	403	E
100	104	430	411	A
100	104	431	412	E
100	104	440	421	A
100	104	441	422	E
100	104	450	430	A
100	104	451	431	E
100	104	460	440	A
100	104	461	441	E
100	104	470	450	A
100	104	471	451	E
100	104	480	459	A
100	104	481	460	E
100	104	490	469	A
100	104	491	470	E
100	104	500	478	A
100	104	501	479	E
100	104	525	502	A
100	104	526	503	E
100	104	550	526	A
100	104	551	527	E
100	104	575	550	A
100	104	576	551	E
100	104	600	574	A
100	104	601	575	E
100	104	625	598	A
100	104	626	599	E
100	104	650	622	A
100	104	651	623	E
100	104	675	646	A
100	104	676	647	E
100	104	700	670	A
100	104	701	671	E
100	104	725	694	A
100	104	750	717	A
100	104	751	718	E
100	104	775	741	A
100	104	800	765	A
100	104	801	766	E
100	104	850	813	A

Old Size	New Size	Old Strike (Cents)	New Strike (Cents)	Exercise
100	104	1	1	E
100	104	200	191	A
100	104	220	210	A
100	104	221	211	E
100	104	240	230	A
100	104	241	231	E
100	104	260	249	A
100	104	261	250	E
100	104	280	268	A
100	104	281	269	E
100	104	300	287	A
100	104	301	288	E
100	104	320	306	A
100	104	321	307	E
100	104	330	316	A
100	104	340	325	A
100	104	341	326	E
100	104	350	335	A
100	104	360	344	A
100	104	361	345	E
100	104	370	354	A
100	104	371	355	E
100	104	380	364	A
100	104	381	365	E
100	104	390	373	A
100	104	391	374	E
100	104	400	383	A
100	104	401	384	E
100	104	410	392	A
100	104	411	393	E
100	104	420	402	A
100	104	421	403	E
100	104	430	411	A
100	104	431	412	E
100	104	440	421	A
100	104	441	422	E
100	104	450	430	A
100	104	451	431	E
100	104	460	440	A
100	104	461	441	E
100	104	470	450	A
100	104	471	451	E
100	104	480	459	A
100	104	481	460	E
100	104	490	469	A
100	104	491	470	E
100	104	500	478	A
100	104	501	479	E
100	104	525	502	A
100	104	526	503	E
100	104	550	526	A
100	104	551	527	E
100	104	575	550	A
100	104	576	551	E
100	104	600	574	A
100	104	601	575	E
100	104	625	598	A
100	104	626	599	E
100	104	650	622	A
100	104	651	623	E
100	104	675	646	A
100	104	676	647	E
100	104	700	670	A
100	104	701	671	E
100	104	725	694	A
100	104	750	717	A
100	104	751	718	E
100	104	775	741	A
100	104	800	765	A
100	104	801	766	E
100	104	850	813	A

Old Size	New Size	Old Strike (Cents)	New Strike (Cents)	Exercise
100	104	1	1	E
100	104	200	191	A
100	104	220	210	A
100	104	221	211	E
100	104	240	230	A
100	104	241	231	E
100	104	260	249	A
100	104	261	250	E
100	104	280	268	A
100	104	281	269	E
100	104	300	287	A
100	104	301	288	E
100	104	320	306	A
100	104	321	307	E
100	104	330	316	A
100	104	340	325	A
100	104	341	326	E
100	104	350	335	A
100	104	360	344	A
100	104	361	345	E
100	104	370	354	A
100	104	371	355	E
100	104	380	364	A
100	104	381	365	E
100	104	390	373	A
100	104	391	374	E
100	104	400	383	A
100	104	401	384	E
100	104	410	392	A
100	104	411	393	E
100	104	420	402	A
100	104	421	403	E
100	104	430	411	A
100	104	431	412	E
100	104	440	421	A
100	104	441	422	E
100	104	450	430	A
100	104	451	431	E
100	104	460	440	A
100	104	461	441	E
100	104	470	450	A
100	104	471	451	E
100	104	480	459	A
100	104	481	460	E
100	104	490	469	A
100	104	491	470	E
100	104	500	478	A
100	104	501	479	E
100	104	525	502	A
100	104	526	503	E
100	104	550	526	A
100	104	551	527	E
100	104	575	550	A
100	104	576	551	E
100	104	600	574	A
100	104	601	575	E
100	104	625	598	A
100	104	626	599	E
100	104	650	622	A
100	104	651	623	E
100	104	675	646	A
100	104	676	647	E
100	104	700	670	A
100	104	701	671	E
100	104	725	694	A
100	104	750	717	A
100	104	751	718	E
100	104	775	741	A
100	104	800	765	A
100	104	801	766	E
100	104	850	813	A