The Securities and Exchange Commission is investigating the events leading up to the collapse of Bear Stearns, specifically a surge in options contracts betting that the investment bank’s share price would fall sharply. Citing people familiar with the matter, the paper reported the SEC probe focuses on a surge last week in “put” options that came days before the firm’s proposed sale to J.P. Morgan Chase & Co. for stock now valued at about $278.5 million, or $2.32 a share.

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