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Product Description
The Pharmaceutical Index is designed to represent a cross section of widely held, highly capitalized companies involved in various phased of the pharmaceutical industry. The Index is market-value (capitalization) weighted. |
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Index Components
Components list as of 10/8/01
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Pharmaceutical Index is composed of shares of the following 15 issues: |
| Abbott Laboratories |
(ABT) |
Johnson & Johnson |
(JNJ) |
| American Home Products Corporation |
(AHP) |
King Pharmaceuticals, Inc. |
(KG) |
| Amgen, Inc. |
(AMGN) |
Lilly (Eli) & Company |
(LLY) |
| AstraZeneca PLC |
(AZN) |
Merck & Company, Inc. |
(MRK) |
| Bristol-Myers Squibb Company |
(BMY) |
Pfizer, Inc. |
(PFE) |
| Forest Laboratories Inc. |
(FRX) |
Pharmacia Corporation |
(PHA) |
| Glaxo Smith Kline Plc |
(GSK) |
Schering-Plough Corporation |
(SGP) |
| IVAX Corporation |
(IVX) |
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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
24,000 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) reduced by any out-of-the-money amount to a minimum of premium plus 10% 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
716929104 |
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Trading Symbol
DRG |
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Final Settlement Value Symbol
DRO |
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