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CBOE FILES TO LIST EQUITY BOUNDs

 CBOE FILES TO LIST EQUITY BOUNDs
 CHICAGO, July 23 /PRNewswire/ -- The Chicago Board Options Exchange


(CBOE) filed today with the Securities and Exchange Commission (SEC) for approval to trade a new, packaged securities product called Equity BOUNDs.
 A BOUND is a long-term, option-like security that replicates the return of an option buy write. A buy write is a combination position in which the owner of a stock sells a call option on it. Like the buy write strategy, a BOUND offers investors the opportunity to increase the return on the underlying stock and to reduce the risk associated with ownership of the stock.
 BOUNDs will be European-style exercise, i.e. can be exercised on the last trading day only. BOUND contracts initially will be offered on selected high volume, blue-chip issues. BOUNDs are issued and guaranteed by the Options Clearing Corp.
 BOUND holders will participate in the capital appreciation of the stock up to the strike price. At expiration, the BOUND holder will receive 100 shares of the underlying stock if the stock price closes at or below the strike price. If the stock price closes above the strike price, the holder will receive a cash payment of 100 times the strike price. In either case, the holder will receive cash payments equal to the dividends paid on the underlying stock.
 BOUND contracts will span up to five years to expiration, and CBOE included in its filing a request for SEC approval to further extend LEAPS(TM) (Long-term Equity Anticipation Securities) expirations, from the current span of up to 39 months, out to five years.
 BOUNDs are a complement to LEAPS, which CBOE pioneered on Oct. 5, 1990. Interest in LEAPS has grown rapidly, and to date, 2.2 million LEAPS contracts have been traded at CBOE.
 "Much of the success of LEAPS is due to the fact that they provide a relatively low-cost way to take a long-term position in stocks. Similarly, BOUNDs offer a more efficient means to trade long-term buy writes," said CBOE Chairman and CEO Duke Chapman.
 CBOE, regulated by the Securities and Exchange Commission, is the pioneer of listed options and the world's largest options marketplace. In addition to options on 336 widely-traded stocks, the exchange lists options on the Standard & Poor's 100 and 500 stock indexes and options on short-term and long-term interest rates.
 -0- 7/23/92
 /CONTACT: Patricia Campbell, 312-786-7927, or Bonnie Greenberg, 312-786-7393, both of CBOE/ CO: Chicago Board Options Exchange ST: Illinois IN: FIN SU:


GK -- NY090 -- 2625 07/23/92 14:23 EDT
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Date:Jul 23, 1992
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