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Asked a question last year

What will happen to any future contract price and quantity on an ex-bonus date?

Prabodhan chandane
Basically ex-Bonus is a Company Alloting additional shares in a certain ratio eg 1:4.
Option strike prices of underlying script is divided by ratio(That is announced by Company), and future contract lot size revised to maintain the same contract value as per equity.
Hence, Nothing is affected in open position.
Smarty Sandy
Bonus change the lot size of the underlying stock of a future contract without changing the contract value.

Bonus is declared out of reserve, that is free reserve get converted into capital, hence the price goes down with equivalent rise in no of open shares. So it is no profit no loss situations on ex date of bonus dividends.

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The adjusted futures base price shall be arrived at by dividing the old futures

price by the adjustment factor

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dear fyers,

as i knowledge about bonuses if bonus change the actual equity quantity of xyz share.so37, who buy futures of that xyz share then he will also recieve bonus by change in the lot size but contract value remain same.

note:- Bonus is declared out of reserve, that is free reserve will converted into capital, hence the price goes down with equivalent rise in no of open shares. So it is no profit no loss situations on ex date of bonus dividend