Fate of Bear Stearns Options

[geekygamma]

Assuming the JPM purchase of Bear goes through at some price, what happens to listed options on Bear? Do they just get cash settled if in-the-money? There's a lot of tempting premium built in to some. Thanks

[Chuck]

More than likely, you will be responsible for delivering JPM shares to the counterparty.  You mentioned premium so I assume you're taking a short position.