|
Product Description
The Disk Drive Index is designed to measure the performance of a cross section of companies active in
designing and manufacturing electronic data storage devices for computers, as well as
software that helps computers interface with those devices. |
|
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 (rounded to the nearest whole share) of
each component stock that represented approximately $100,000 in market value, based on
closing prices on Nov. 15, 1996 (e.g., a stock that closed at $20 per share would be
represented in the Index by 5,000 shares for a total market value of $100,000). The
aggregate value of the stocks was reduced by a divisor to establish an Index benchmark
value of 200.00.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 February, May, August and November. |
|
Index Components
Components list as of 10/8/01
| The Disk
Drive Index is composed of shares of the following issues: |
| Adaptec, Inc. |
(ADPT) |
Maxtor Corporation |
(MXO) |
| Advanced Digital Information Corp. |
(ADIC) |
Quantum Corp. - DSSG |
(DSS) |
| Hutchinson Technology, Inc. |
(HTCH) |
Read-Rite Corp. |
(RDRT) |
| Iomega Corp. |
(IOM) |
SanDisk Corporation |
(SNDK) |
| M-Systems Flash Disk Pioneers Ltd. |
(FLSH) |
Storage Technology Corp.-Cl. A |
(STK) |
|
|
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 further-term months in the February 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 ½ points.
Additional exercise prices are added as the Index moves. |
|
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 New York business day following expiration. |
|
Position Limits
31,500 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 10% 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
03113A105 |
|
Trading symbol
DDX |
|
Final Settlement Value Symbol
MID |
|
|
|
