Stocks quoted in this article:
The merger between Chase Manhattan (CMB - 45-7/16) and J.P. Morgan (JPM - 165-1/2) became effective on Sunday, December 31. The combined company will be called J.P. Morgan Chase and Co. and will trade under the ticker symbol "JPM." JPM shareholders will receive 3.7 CMB shares for each JPM share held. Based on CMB's Friday close, JPM shares would be valued at about 168.12.
The merged entity is a Dow Jones Industrial component, therefore changes in the components weightings will be affected.
In order to maintain historical continuity in the Dow Jones Industrials, the editors of the Wall Street Journal compute a "divisor." This number is adjusted anytime a company is added to or deleted from the index, a stock split occurs in a member stock, or a spin-off is generated.
The new divisor is 0.1537, meaning than any one-point change in a component member will impact the average by 6.506 points (1/0.1537=6.506).
Options traders will now need to look under JPM for their CMB options. We suggest you check with your broker concerning the changes.
In order to reflect this name and underlying stock symbol change, the CMB option symbol will change to JPM effective with trading on Tuesday, January 2, 2001. The option symbols for the adjusted CJM/XJM and for the January 2002 (WCV) and 2003 (VCX) LEAPS will remain the same. Strike prices and all other option terms remain the same.