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Product Description
The Index is equal-dollar weighted, designed to ensure that each of the securities is represented in approximate
equal dollar value. The Index was established with a benchmark value of 200.00 on December
31, 1991. To further ensure that each component stock continues to represent approximate
equal weight in the Index, adjustments are made annually, based on closing prices on the
third Friday in December. |
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Index Components
Components list as of 10/8/01
| The Morgan
Stanley Cyclical Index is composed of shares of the following issues: |
| Alcoa |
(AA) |
Ingersoll-Rand
Company |
(IR) |
| Caterpillar
Inc. |
(CAT) |
International
Paper Company |
(IP) |
| Citigroup Inc. |
(C) |
Johnson
Controls, Inc. |
(JCI) |
| CSX
Corporation |
(CSX) |
Knight-Ridder,
Inc. |
(KRI) |
| Dana
Corporation |
(DCN) |
Masco
Corporation |
(MAS) |
| Deere &
Co. |
(DE) |
3M |
(MMM) |
| Dow Chemical
Company |
(DOW) |
Motorola, Inc. |
(MOT) |
| Dupont E I De Nemours Co. |
(DD) |
Pactiv
Corporation |
(PTV) |
| Eaton
Corporation |
(ETN) |
Phelps Dodge
Corporation |
(PD) |
| FDX Corp. |
(FDX) |
PPG
Industries, Inc. |
(PPG) |
| Ford Motor
Corporation |
(F) |
Ryder System,
Inc. |
(R) |
| Georgia-Pacific
Corporation |
(GP) |
Sears, Roebuck
and Co. |
(S) |
| The Goodyear
Tire & Rubber Company |
(GT) |
United
Technologies Corporation |
(UTX) |
| Hewlett-Packard
Company |
(HWP) |
USX-US Steel
Group, Inc. |
(X) |
| Honeywell
International Inc. |
(HON) |
Whirlpool
Corp. |
(WHR) |
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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 March 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
Options feature cash settlement based on the dollar difference between the final settlement value of the Index and the
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 per
contract); 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 New York business day following expiration. |
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Position Limits
25,000 contracts on the same side of the market, provided no more than 15,000 of such contracts are in the nearest
expiration month series. |
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Minimum Customer Margin for Uncovered Writers
Premium plus 15% 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 10% of the aggregate contract value. |
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Trading Hours
9:30 a.m. to 4:15 p.m., New York time. |
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Trading System
Specialist/Registered Options Trader. |
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CUSIP Number
616904108 |
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Trading Symbol
CYC |
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Final Settlement Value Symbol
CYO |
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