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Product Description
The Morgan
Stanley High-Technology 35 Index is designed to measure the performance of a cross section
of highly capitalized U.S. companies that are active in nine technology subsectors:
computer services, design software, server software, PC software and new media, networking
and telecommunications equipment, server hardware, PC hardware and peripherals,
specialized systems and semiconductors.
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Equal-Dollar Weighting
MSH 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
$300,000, based on closing prices on Dec. 16, 1994 (e.g., a stock that closed at $40 per
share would be represented in the Index by 7,500 shares for a total market value of
$300,000). The aggregate value of the stocks was reduced by a divisor to establish the
benchmark value of 200. To ensure that each component continues to represent approximately
equal market value in the Index, adjustments, if necessary, are made annually after the
close of trading on the third Friday of December. |
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Index Components
Components list as of 10/8/01
| The Morgan
Stanley High-Technology 35 Index is composed of shares of the following issues: |
| Amazon.com,
Inc. |
(AMZN) |
Hewlett-Packard
Company |
(HWP) |
Palm, Inc. |
(PALM) |
| America
Online, Inc. |
(AOL) |
Intel
Corporation |
(INTC) |
Parametric
Technology Co. |
(PMTC) |
| Applied
Materials, Inc. |
(AMAT) |
International
Business Machines Corp. |
(IBM) |
PeopleSoft,
Inc. |
(PSFT) |
| Automatic
Data Processing, Inc. |
(ADP) |
Intuit,
Inc. |
(INTU) |
Solectron
Corporation |
(SLR) |
| Broadcom
Corporation |
(BRCM) |
JDS
Uniphase Corporation |
(JDSU) |
STMicroelectronics
NV |
(STM) |
| Cisco
Systems, Inc. |
(CSCO) |
Juniper
Networks, Inc. |
(JNPR) |
Sun
Micosystems, Inc. |
(SUNW) |
| Compaq
Computer Corporation |
(CPQ) |
Lucent
Technologies, Inc. |
(LU) |
Sycamore Networks, Inc. |
(SCMR) |
| Computer
Associates Int’l, Inc. |
(CA) |
Micron
Technology |
(MU) |
Tellabs,
Inc. |
(TLAB) |
| Dell
Computer Corporation |
(DELL) |
Microsoft
Corporation |
(MSFT) |
Texas
Instruments, Inc. |
(TXN) |
| Electronic
Arts, Inc. |
(ERTS) |
Motorola,
Inc. |
(MOT) |
Xilinx,
Inc. |
(XLNX) |
| Electronic
Data Systems Corp. |
(EDS) |
Nortel
Networks |
(NT) |
Yahoo!
Inc. |
(YHOO) |
| EMC
Corporation |
(EMC) |
Oracle
Corporation |
(ORCL) |
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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 CycleThree 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
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); 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
63,000 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
0300983100 |
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Trading Symbol
MSH |
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Final Settlement Value Symbol
MVH |
