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CBOE SETS OCT. 9 LAUNCH FOR CBOE BIOTECH INDEX OPTIONS, LEAPS (R)

 CBOE SETS OCT. 9 LAUNCH FOR CBOE BIOTECH INDEX OPTIONS, LEAPS (R)
 CHICAGO, Sept. 25 /PRNewswire/ -- The Chicago Board Options Exchange (CBOE) today announced an Oct. 9 launch date for options on the CBOE BioTech Index (ticker symbol: BGX), pending Securities and Exchange Commission (SEC) approval. CBOE also will list LEAPS (R) (Long-term Equity AnticiPation Securities) on the BioTech Index with expirations more than two years out.
 "Designed for retail and institutional users, our new index will enable participants to manage the risk associated with investments in this emerging and volatile sector,'' said CBOE Chairman Duke Chapman. "With CBOE accounting for more than 90 percent of the nation's index options business, investors can feel confident in the exchange's capacity to provide deep and liquid markets for the new BioTech Index."
 BGX is a price-weighted, 20-stock index which includes a cross- section of biotechnology companies from highly capitalized firms to smaller emerging companies.
 Of the 20 equities in the index, 17 trade on the NASDAQ (National Association of Securities Dealers Automated Quotation) and three on the American Stock Exchange. The component stocks have a market value in excess of $19.2 billion and average 30 million shares outstanding per company.
 Performance of the CBOE BioTech Index reflects the biotechnology market segment's historical volatility. The BioTech index appreciated approximately 400 percent in the past four years, including a 104 percent return in 1991, and declined by 31 percent in 1992.
 Call and put options will be based on an underlying value of $100 times the index level, will be cash-settled and have a European-style exercise. LEAPS will be based on 1/10th the value of the underlying index times $100 and expire in December 1993 and December 1994. Trading hours will be 8:30 a.m. to 3:15 p.m. Chicago time.
 CBOE BioTech Index stocks include:
 Amgen, Inc. (ticker symbol: AMGN); Biogen, Inc. (BGEN); Bio-Tech General Corp. (BTGC); Calgene (CGNE); Centocor, Inc. (CNTO); Chiron Corp. (CHIR); Cytogen (CYTO); Enzon, Inc. (ENZN); Epitope, Inc. (EPT); Gensia Pharmaceuticals, Inc. (GNSA); Genzyme Corp. (GENZ); Greenwich Pharmaceuticals, Inc. (GRPI); Immune Response Corp. (IMNR); Immunex Corp. (IMNX); Immunomedics, Inc. (IMMU); IVAX Corp. (IVX); Liposome Co. Inc. (LIPO); North American Vaccine, Inc. (NVX); Synergen (SYGN), and XOMA Corp. (XOMA).
 CBOE, regulated by the SEC, is the world's largest options marketplace, listing options on the S&P 100 and 500 stock indexes, options on more than 340 stocks and short- and long-term interest rates.
 CBOE BIOTECH INDEX PROPOSED CONTRACT SPECIFICATIONS:
 INDEX DESCRIPTION: The CBOE BioTech Index is a price-weighted index of domestic equities traded on the AMEX and NASDAQ. The stocks in the index are representative of small- and medium-cap stocks in the biotechnology sector.
 UNDERLYING: Currently about 150.
 MULTIPLIER: $100
 PREMIUM QUOTE: Stated in points and fractions. Minimum tick for series trading below $3 is 1/16th; above $3 is 1/8th.
 STRIKE PRICES: Strike prices will be set to bracket the index level, in increments of 5 points. LEAPS series will be listed with 2-1/2 point intervals.
 EXPIRATION CYCLE: Three near-term months plus up to 3 months on the March cycle. Reduced (1/10th) value LEAPS with expirations in December 1993 (ZBG) and December 1994 (WBG) will also be listed.
 EXPIRATION DATE: Saturday following the third Friday of the expiration month.
 LAST TRADING DAY: Two business days prior to the expiration date.
 EXERCISE STYLE: European.
 SETTLEMENT VALUE: Calculated based on the opening prices of the component securities on the business day prior to expiration. Symbol BGS.
 SETTLEMENT: Cash settled.
 MARGINS: Narrow-based margins apply.
 TRADING SYSTEM: Designated Primary Market Maker.
 POSITION LIMITS: 8,000 contracts pursuant to CBOE rule 24.4. LEAPS positions will be aggregated with short-term options on the basis of 10 LEAPS contracts to one full-value contract.
 TRADING HOURS: 8:30 a.m. to 3:15 p.m. Chicago time.
 THE CBOE BIOTECH INDEX AS OF SEPT. 15, 1992:
 DESCRIPTION: The CBOE BioTech Index consists of 20 biotechnology firms chosen on the basis of size, volatility, float and underlying trading volume. It is a price-weighted index, wherein the weighings are adjusted for stock dividends, spin-offs, etc. The stocks that make up the index:
 Amgen Genzyme
 Biogen Greenwich Pharmaceuticals
 Bio-Tech General Immune Response
 Calgene Immunex
 Centocor Immunomedics
 Chiron IVAX
 Cytogen Liposome
 Enzon North America Vaccine
 Epitope Synergen
 Gensia Pharmaceuticals XOMA
 STOCK TRADE: Of the 20 stocks, three trade on the AMEX and 17 are over-the-counter.
 DISSEMINATION: The index is calculated real time by Bridge Data Services and dissemination to quote vendors every 15 seconds over OPRA. The ticker symbol is BGX.
 HISTORICAL: The index was calculated back to Jan. 1, 1988.
 BASIC STATS CBOE BioTech
 Total Market Value: $19.665 billion
 Mean Market Cap: $983.27 million
 Median Market Cap: $318.36 million
 Mean Price: $24.16
 Median Price: $18.38
 Mean Shares Outstanding: 30.58 million
 Median Shares Outstanding: 25.19 million
 /CONTACT: Stan Lata, 312-786-7392 or Bonnie Greenberg, 312-786-7393, both of CBOE/ CO: Chicago Board Options Exchange ST: Illinois IN: FIN SU: PDT


LR -- NY049 -- 3582 09/25/92 15:03 EDT
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Date:Sep 25, 1992
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