Index Options - Contract Specification
Natural Gas Index - XNG



Product Description
The Natural Gas Index is designed to measure the performance of highly capitalized companies in the natural gas industry involved primarily in natural gas exploration and production and natural gas pipeline transportation and transmission.
Equal-Dollar Weighting
The Index is equal-dollar weighted to ensure that each of its component securities is represented in approximate equal-dollar value. Equal-dollar weighting was established by designating the number of shares of each component stock that represented approximately $10,000 in market value, based on closing prices on Oct. 15, 1993 (e.g., a stock that closed at $20 per share would be represented in the Index by 500 shares for a total market value of $10,000). The aggregate value of the stocks was divided by a divisor to establish an Index benchmark value of 300.00. To ensure that each component stock continues to represent approximate equal market value in the Index, adjustments are made quarterly after the close of trading on the third Friday of January, April, July and October.
Index Components
Components list as of 10/8/01
The Natural Gas Index is composed of shares of the following issues:
Anadarko Petroleum Corporation (APC) National Fuel Gas Company (NFG)
Apache Corporation (APA) NiSource Inc. (NI)
Burlington Resources Inc. (BR) Noble Affiliates, Inc. (NBL)
Dynegy Inc. (DYN) Ocean Energy Inc. (OEI)
El Paso Energy Corporation (EPG) Pogo Producing Company (PPP)
Enron Corporation (ENE) Questar Corporation (STR)
EOG Resources Inc.. (EOG) Williams Company (WMB)
Kinder Morgan Inc. (KMI)    
Trading Unit
The minimum trade size is one option contract. The notional value underlying each contract equals $100 multiplied by the Index value.
Expiration Cycle
Three consecutive near-term expiration months plus two successive months from the January cycle.
Expiration
The Saturday following the third Friday of the expiration month.
Last Trading Day
Two business days prior to expiration (normally a Thursday).
Limited Exercise of Options
European style. Options may be exercised only on the last business day prior to expiration (normally a Friday). Writers are subject to assignment only at expiration. Check with your broker to ascertain cut-off times for exercise and provisions for automatic exercise.
"Delivery" Method if Exercised
Cash settlement based on the dollar difference between the final settlement value of the Index and strike price of the contract multiplied by $100. The settlement value is determined on the last business day prior to expiration and is based on the first (opening) reported sale price for each component stock.
Exercise Price Intervals
Exercise (strike) prices are set at five-point intervals, bracketing the current value of the Index when the Index is above 200. If the Index is below 200, the interval will be 2 � points.
Option Premium Quotations
Stated in points and fractions. One point equals $100. Minimum tick for series trading below 3 is 1/16 ($6.25); for all other series, 1/8 ($12.50).
Final Index Settlement Value
Determined on the last business day prior to expiration, based on the first (opening) reported sale price for each component stock.
Settlement
Next business day following expiration.
Position Limits
15,000 contracts on the same side of the market.
Minimum Customer Margin for Uncovered Writers
Premium plus 20% of the aggregate Index value (Index value x $100) minus the amount by which the option is out-of-the-money, if any. The minimum margin is premium plus 1% of the aggregate Index value.
Trading Hours
9:30 a.m. to 4:02 p.m., New York time.
Trading System
Specialist/Registered Options Trader.
CUSIP Number
001955103
Trading Symbol
XNG
Final Settlement Value Symbol
NGV


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Footnote for the FlashQuotes For NASDAQ-100 page:
The NASDAQ 100 Index is a modified market value-weighted index.
The NASDAQ-100 Points are the market value weighted impact on the value of the Nasdaq-100 Index attributable to each stock's intraday price change.
For example, if the Nasdaq-100 Index is up 100 points and in this column Cisco has a positive 10 point change, then 10 of the 100 point gain is attributable to Cisco.