Practically speaking, are individual stock futures/options and Index futures/ (options on futures) protected from arbitrary company action? Say, in the extreme, all companies suddenly pays huge dividend (99%) or split stocks like crazy (1 to 100)?
I define protected as: a contract is protected if it is not affected by arbitrary corporate actions specifically split and dividend. In the above scenario, if the contract is not protected. in the above long futures will wipe out the the amounts associated with the underlying and call options will become worthless. Yet, there will be no change for stock holders.