What is an adjustment of terms?

Adjustment of terms refers to adjusting the contract specifications of an option or a future, usually as a result of specific changes or events concerning the underlying value. This may include, for example, changing the exercise price or the trading unit of a stock option, due to events such as claims, stock dividends, or stock splits.

This term plays an important role in the financial world and is often influenced by legal provisions, market conditions, or specific business practices.