Printer Friendly

CHICAGO BOARD OPTIONS EXCHANGE TO LIST NEW SECURITY, CAPS, ON FRIDAY

CHICAGO BOARD OPTIONS EXCHANGE TO LIST NEW SECURITY, CAPS, ON FRIDAY
 CHICAGO, Nov. 6 /PRNewswire/ -- The Chicago Board Options Exchange (CBOE) on Friday, Nov. 8, will list a new type of security, called CAPS(TM), based on the S&P 100 (OEX) and S&P 500 (SPX) stock indexes.
 For investors, key features of CAPS include the right to participate in a predetermined upward or downward move in either index and an automatic exercise feature once the cap price is met.
 Initially, CBOE will list put and call OEX CAPS (ticker symbol CPO), based on the S&P 100 stock index, with expirations in February 1992, and put and call SPX CAPS (ticker symbol: CPS), based on the S&P 500 stock index, with expirations in March 1992.
 Additional OEX CAPS will be listed every two months and SPX CAPS every quarter -- or following a substantial market move.
 Like other index options, the trading unit of CAPS is $100 times the current value of the index and is cash-settled. The initial strike prices will be determined on Thursday, Nov. 7.
 Trading hours will be 8:30 a.m. to 3:15 p.m., Chicago time.
 Following is the Index CAPS Contract Specifications sheet.
 Index CAPS Contract Specifications:
 Series: One at-the-money call CAPS and one at-the-money put CAPS will be listed initially for each index. Strike prices will be added to accommodate large movements in the underlying index; e.g., if OEX moves from 370 to 390, new CAPS with a strike price of 390 and a capped price of 420 may be added.
 Strike and Capped Price Intervals: Intervals will be $30, e.g. 370-400.
 Automatic Exercise: Automatic exercise will occur when the index closes at or above the capped price for call CAPS or at or below the capped price for put CAPS. For example, call CAPS with a strike price of 370 and a capped price of 400 would be automatically exercised when the index closes at 400 or above anytime prior to expiration.
 Exercise Style: European. The holder cannot exercise the position prior to expiration.
 Expiration Cycle: Four months for OEX and six months for SPX. New CAPS will be added every two months for OEX and quarterly for SPX.
 Ticker Symbol: CPO for OEX CAPS and CPS for SPX CAPS. Standard month and strike price codes will be used.
 Underlying Value: A $100 times the value of the index.
 Premium Quotations: Premiums are quoted in dollars and fractions. Each premium point represents $100. The minimum fraction is 1/16 for all CAPS trading below 3 and 1/8 for all other premiums.
 Settlements: Cash per standard OEX and SPX options.
 Trading System: Market Maker in the OEX and SPX crowds, respectively.
 Position Limits: Aggregated with standard options.
 S&P 100 and S&P 500 are registered trademarks of Standard & Poor's Corp. and are licensed for use by the Chicago Board Options Exchange. OEX, SPX and CAPS are trademarks of the CBOE.
 -0- 11/6/91
 /CONTACT: Bonnie Greenberg, 312-786-7393, Stan Lata, 312-786-7392, or Patricia Campbell, 312-786-7927, all of the CBOE/ CO: Chicago Board Options Exchange ST: Illinois IN: FIN SU: PDT CK -- NY062 -- 1785 11/06/91 13:59 EST
COPYRIGHT 1991 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 6, 1991
Words:534
Previous Article:QUANEX REACHES FOUR-YEAR LABOR ACCORD AT GULF STATES DIVISION
Next Article:INTERSTATE COMMERCE COMMISSION APPROVES WISCONSIN CENTRAL LINE PURCHASES
Topics:


Related Articles
WILSHIRE ASSOCIATES, PSE AND CBOT LAUNCH SMALL CAP STOCK INDEX
CHICAGO RE-DEDICATES STOCK EXCHANGE; TODAY MARKS NEW NAME AND CITY'S RISE AS WORLD MARKET CENTER
CHICAGO EXCHANGES ANNOUNCE JOINT INITIATIVE TO MARKET CITY AS 'EXCHANGE CAPITAL OF THE WORLD'
NASDAQ, CBOE ANNOUNCE AGREEMENT FOR OPTIONS TRADING ON THE NASDAQ-100(R)
AMEX CELEBRATES 20 YEARS OF OPTIONS TRADING
CBOE to List Options on Morgan Stanley Multinational Index (NFT)
CBOE Announces Christmas, New Year's Day Holiday Schedule
CBOE Seat Price Reaches All-Time High
CBOE Files to List Options, LEAPS(R) on the Dow Jones Industrial Average (DJIA), Dow Jones Transportation Average (DJTA) And Dow Jones Utility...
CBOE Announces Independence Day Trading Schedule

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters