can someone explain exactly how the yhoo/msft deal will work?

Lets assume yahoo said yes to the 31 msft bid.

1) When will yhoo stock be coverted to cash / msft stocks?
2) How do you pick between cash or msft stock?
3) What will happen to all the yhoo options? do they basically lose all time premium and become underlying-strike?

thanks

 

I think:

1) If they accept the deal (yahoo) you get the money in your account. Yahoo stock goes off the board.

2) Just buy msft if you want on the day yahoo goes of the board

3) Good question but I think they are excercized on the day the stock goes of the board if you do nothing before.

 

The name of the newly combined entity will be........ Micro-Who?