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>Product Description
The Morgan Stanley Internet Index
(MOX) is composed of leading companies that are
driving the growth of Internet usage. The Index comprises companies drawn from nine Internet
subsectors: infrastructure, infrastructure services, consulting/services, portals, vertical
portals, commerce, Internet/B2B software, B2B commerce, and multi-sector Internet companies.
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Equal-Dollar Weighting
MOX is equal-dollar weighted to ensure that components are 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 to represent
approximately $100,000, based on closing prices on Dec. 31, 1999 (e.g., a stock that
closed at $40 per share would be represented in the Index by 2,500 shares for a total
market value of $100,000). The aggregate value of the stocks was reduced by a divisor
to establish the benchmark value of 100. To ensure that each component continues to
represent approximately equal market value in the Index, adjustments, if necessary,
are made quarterly after the close of trading on the third Friday of March, June,
September and December. |
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Index Components
Components list as of 10/10/01
| The Morgan
Stanley Internet Index is composed of shares of the following issues: |
| Amazon.com, Inc. |
(AMZN) |
i2 Technologies Corp. |
(ITWO) |
| America Online, Inc. |
(AOL) |
Inktomi Corp. |
(INKT) |
| Ariba, Inc. |
(ARBA) |
Intuit Inc. |
(INTU) |
| CNET Networks Inc. |
(CNET) |
Juniper Networks |
(JNPR) |
| Charles Schwab Corp. |
(SCH) |
Microsoft Corporation |
(MSFT) |
| Ciena Corporation |
(CIEN) |
Oracle Corporation |
(ORCL) |
| Cisco Systems, Inc. |
(CSCO) |
priceline.com Inc. |
(PCLN) |
| DoubleClick Inc. |
(DCLK) |
Sapient Corporation |
(SAPE) |
| eBay Inc. |
(EBAY) |
Sun Microsystems |
(SUNW) |
| EMC Corporation |
(EMC) |
Sycamore Networks, Inc. |
(SCMR) |
| E.piphany, Inc. |
(EPNY) |
TMP Worldwide |
(TMPW) |
| Excite@Home Corp. (At Home Corporation) |
(ATHMQ) |
VeriSign |
(VRSN) |
| Genuity Inc. |
(GENU) |
VerticalNet, Inc. |
(VERT) |
| Healtheon/WebMD Corp. |
(HLTH) |
WorldCom, Inc. |
(WCOM) |
| HomeStore.com, Inc. |
(HOMS) |
Yahoo! Inc. |
(YHOO) |
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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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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 New York 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) 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 Hous
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
616984 100 |
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Trading Symbol
MOX |
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Final Settlement Value Symbol
MOY |
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"The Morgan Stanley Internet Index" is a
service mark of Morgan Stanley Dean Witter & Co. and has been licensed for use by The American Stock
Exchange LLC. Morgan Stanley Index options are not sponsored by Morgan Stanley and Morgan Stanley
does not guarantee the accuracy or completeness of the Index or make any warranty, express or implied,
as to results to be obtained by anyone in connection with the use of the Index and further disclaims
all warranties of merchantability or fitness for a particular purpose with respect to the Index.
Morgan Stanley also assumes no liability or obligation in connection with the trading of the Morgan
Stanley Index options.
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