Handle attaching in symplectic homology and the Chord Conjecture

Arnold conjectured that every Legendrian knot in the standard contact structure on the 3-sphere possesses a characteristic chord with respect to any contact form. I confirm this conjecture if the know has Thurston-Bennequin invariant-1. More generally, existence of chords is proved for a standard Legendrian unknot on the boundary of a subcritical Stein manifold of any dimension. There is also a multiplicity result which implies in some situations existence of infinitely many chords. The proof relies on the behaviour of symplectic homology under handle attaching. The main observation is that symplectic homology only changes in the presence of chords.