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CBOE TO LIST FLEX OPTIONS ON RUSSELL 2000 INDEX

 CHICAGO, Aug. 2 /PRNewswire/ -- The Chicago Board Options Exchange (CBOE) today announced that on Friday, Aug. 6 it will offer flexible exchange options on the Russell 2000(R) Index, the industry benchmark for small-capitalization stocks.
 "In five months, the CBOE's FLEX Options on the S&P 100 and S&P 500 stock indices have surpassed the $6.5 billion mark in underlying notional value, and CBOE will build upon this impressive performance by offering FLEX Options on the country's premier small-cap stock index, the Russell 2000," said CBOE Chairman Duke Chapman. "The addition of FLEX Options on the Russell 2000 Index will allow institutional investors to tailor their small-cap option positions to match their portfolio needs and create a range of structured products."
 FLEX Options allow institutional market participants, such as pension funds, money managers and insurance companies, to select various terms of an option contact -- length of time, strike price, exercise style and expiration value -- to precisely meet their investment objectives.
 The Russell 2000 Index, created in 1984 by the Frank Russell Company, is designed to be a comprehensive representation of the U.S. small-cap equities market. The index is capitalization weighted, consists of the smallest 2,000 companies out of the top 3,000 in domestic equity capitalization and ranges from $59 million to $591 million in value of outstanding shares.
 FLEX Options provide institutions an alternative to over-the-counter options will the benefits of an exchange setting. Those benefits include competition in price discovery, liquidity, transparency, secondary market fungibility and the reduction of trading counter-party credit risk by having The Options Clearing Corporation issue and clear the options.
 Transactions in which a FLEX series is created must represent at least $10 million in underlying value. FLEX Options open interest on July 29 was 94,034 contracts.
 CBOE, regulated by the Securities and Exchange Commission, is the pioneer of listed options and the world's largest options marketplace.
 -0- 8/2/93
 /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:

MP -- NY086 -- 8424 08/02/93 14:09 EDT
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Publication:PR Newswire
Date:Aug 2, 1993
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