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Product Description
The Hong Kong Option Index is a broad-market
index that measures the composite price performance of 30 stocks actively traded on The Stock Exchange of Hong Kong Ltd.
(HKSE), designed to reflect the movement of the Hong Kong stock market as a whole. The Hong Kong Option Index is based
on approximately 40% of the value of the AMEX Hong Kong 30 Index, established June 25, 1993 with a benchmark value of
350.00.
The Hong Kong Option Index is calculated and disseminated twice each New York business day based on the most
recent official closing price of each of the component stocks as reported by the HKSE and the previous day’s HK$/US$
exchange rate: first before the opening of trading and again approximately at noon.
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Index Components
Components list as of 07/23/01
| The Hong Kong
Option Index is composed of shares of the following issues: |
| Amoy
Properties |
Henderson
Land Development Co. Ltd. |
| Asia
Satellite Telecom. Holdings Ltd. |
Hong
Kong and China Gas Company Limited |
| Bank
of East Asia Limited |
Hong
Kong Electric Holdings Limited |
| Cable
& Wireless HKT Ltd |
Hong
Kong and Shanghai Hotels Limited |
| Cathay
Pacific Airways Limited |
HSBC Holdings |
| Cheung
Kong Holdings Limited |
Hutchinson
Whampoa Limited |
| Cheung
Kong Infrastructure |
Hysan
Development Company Limited |
| China
Resources Ent. |
Legend Holdings Ltd. |
| China
Telecom Hong Kong Ltd. |
New
World Development Company Limited |
| CITIC
Pacific Limited |
Shanghai
Industrial Holdings Ltd. |
| CLP
Holdings Ltd. |
Sino
Land Company Ltd. |
| Great
Eagle Holdings Limited |
Sun
Hung Kao Properties Limited |
| Hang
Lung Development Company Limited |
Swire
Pacific Limited (A shares) |
| Hang
Seng Bank Limited |
Wharf
Holdings Limited |
| Henderson
Investment Limited |
Wheelock
and Company Limited |
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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 near-term expiration months,
plus two additional further-term expiration 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
Options may be exercised only at
expiration. Writers of options are subject to exercise only at that time. Chech 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 in U.S. dollars
based on the 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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Premium Quotations
Stated in dollars and fractions.
One point equals $100. Minimum tick for options 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 closing prices of the component stocks on the HKSE
on the last business day prior to expiration and the exchange rate established
approximately 11:30 a.m. New York time two business days before expiration. |
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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; no more than 15,000 in the nearest expiration month series. |
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Minimum Customer Margin for
Uncovered Writers
Option premium plus 15% 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 4:15 p.m., New York
time. |
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Trading System
Specialist/Registered Options
Trader. |
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CUSIP Number
00169A104 |
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Trading Symbol
HKO |
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Final Settlement Value
Symbol
KDY |
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