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Product Description
The Biotechnology Index is designed to measure the performance of a cross section of companies in the biotechnology
industry that are primarily involved in the use of biological processes to develop
products or provide services. |
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Equal-Dollar Weighting
The Index is equal-dollar weighted, designed 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 security that represented approximately $10,000 in
market value, based on closing prices on Oct. 18, 1991 (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 reduced by a divisor (initially 750.1506)
to establish an Index benchmark value of 200.00. To ensure that each component stock
continues to represent approximate equal market value, adjustments are made quarterly
after the close of trading on the third Friday of January, April, July and October. |
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Index Components
Components list as of 10/8/01
| The Biotechnology
Index is composed of shares of the following issues: |
| Affymetrix, Inc. |
(AFFX) |
Gilead Sciences Inc. |
(GILD) |
| Amgen Inc. |
(AMGN) |
Human Genome Sciences, Inc. |
(HGSI) |
| Applera Corp-Celera Genomics Group |
(CRA) |
IDEC Pharmaceuticals Corporation |
(IDPH) |
| Biogen, Inc. |
(BGEN) |
Immunex Corporation |
(IMNX) |
| Cephalon, Inc. |
(CEPH) |
Medimmune Inc. |
(MEDI) |
| Chiron Corporation |
(CHIR) |
Millennium Pharmaceuticals, Inc. |
(MLNM) |
| COR Therapeutics, Inc. |
(CORR) |
Protein Design Labs, Inc. |
(PDLI) |
| Genzyme Corporation |
(GENZ) |
Vertex Pharmaceuticals Inc. |
(VRTX) |
| Genentech Inc. |
(DNA) |
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Trading Unit
The minimum trade size is one option contract. The notional value underlying each contract equals $100 multiplied by the
Index value. |
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Expiration Cycle
Three consecutive near-term expiration months plus two successive months from the January cycle. |
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Expiration
The Saturday following the third Friday of the expiration month. |
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Last Trading Day
Two business days prior to expiration (normally a Thursday). |
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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. |
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"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. |
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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 ½ points. |
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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). |
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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. |
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Settlement
Next business day following expiration. |
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Position Limits
31,500 contracts on the same side of the market. |
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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. |
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Trading Hours
9:30 a.m. to 4:02 p.m., New York time. |
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Trading System
Specialist/Registered Options Trader. |
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CUSIP Number
09066D103 |
Trading Symbol
BTS |
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