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CBOE TO TRADE OPTIONS ON BIOTECH INDEX

 CBOE TO TRADE OPTIONS ON BIOTECH INDEX
 CHICAGO, Jan. 7 /PRNewswire/ -- The Chicago Board Options Exchange


(CBOE) filed on Dec. 27 with the Securities and Exchange Commission (SEC) to list options on the CBOE BioTech Index (ticker symbol: TKX). The new index, developed by CBOE, is based on 20 domestic biotechnology stocks traded on NASDAQ and the American Stock Exchange (Amex).
 The BioTech Index, which represents medium- and small-capitalization biotechnology stocks, is price-weighted and reflects changes in the prices of the component stocks.
 "The BioTech Index tracks a sector of the U.S. equity market that is not currently represented in the domestic derivative markets," said CBOE Chairman Duke Chapman. "BioTech Index options will provide retail and institutional investors with a means to benefit from their forecasts of biotechnology stocks. This new index will provide an effective means for hedging the risks of biotech portfolios, and will offer a low cost means of repositioning the composition of a broader based equity portfolio."
 Options on the CBOE BioTech Index will have a $100 multiplier, be cash-settled and are European-style (settlement will be based on the closing value of the index on the exercise date). Trading hours will be the same as other index options, 8:30 a.m. to 3:15 p.m. (Chicago time).
 The 20 underlying stocks comprising the proposed index are: Biogen, Centocor, Chiron, Enzon, Epitope, Genetics Institute, Gensia Pharmaceuticals, Genzyme, Greenwich Pharmaceuticals, Immune Response, Immunex, Invacare, IVAX, Liposome, Nellcor, North America Vaccine, St. Jude Medical, Scimed Life Systems, Summitt Technology, and XOMA.
 Currently, 17 of the stocks trade on NASDAQ and three on the Amex. The stocks range in capitalization from approximately $166 million to $2.2 billion, with the median capitalization being $590 million. The index, which will be maintained by CBOE, may be modified at times to reflect changes in the biotechnology sector.
 The addition of options on the BioTech Index will underscore CBOE's existing dominance in the U.S. index options market. Accounting for 92 percent of the nation's index options market share in 1991, CBOE lists options on the S&P 100 and 500 indexes, as well as options on more than 280 stocks and short- and long-term interest rates.
 CBOE, regulated by the SEC, is the world's largest options marketplace.
 -0- 1/7/92
 /CONTACT: Stan A. Lata, 312-786-7392, or Bonnie Greenberg, 312-786-7393, both of CBOE/ CO: Chicago Board Options Exchange ST: Illinois IN: FIN SU: PDT SM -- NY075 -- 7479 01/07/92 16:51 EST
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Copyright 1992 Gale, Cengage Learning. All rights reserved.

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Date:Jan 7, 1992
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