Index Val. Method: In calculating the Index, 100 yen is assigned to equal one U.S. dollar. Thus, the aggregate price of the Index's component stocks is 30,500 yen, the Index value will be $305. This ensures that the Index value will correspond directly to changes in the aggregate yen prices of the component stocks and will not be affected by fluctuating yen/dollar exchange rates.
Trading Unit: The Index value multiplied by 100.
Expiration Cycle: Three consecutive near-term expiration months, plus up to five additional months from further term expiration months, providing for options with expirations 'in excess of two years.
Expiration: The Saturday following the third Friday of the expiration month.
Last Trading Day: The second to last business day prior to expiration (normally Thursday).
Limited Exercise : Options may be exercised only on the last day prior to expiration. Writers of options are subject to exercise assignment only at that -
Delivery Method : If Exercised, cash settlement (in accordance with the rules of OCC) based on the dollar difference between the settlement valuation of the Index and the option exercise price multiplied by 100. The Index settlement value is determined following the close of trading on the Tokyo Stock Exchange on the last business day in Japan prior to expiration (normally Friday).
Exercise Prices: Exercise (strike) prices for options with less than one year to expiration are set at five-point intervals to bracket the current value of the Index. Additional exercise prices are added when the current value of the Index touches an existing strike. For options with more than one year to expiration, exercise prices are set at 50- point intervals.
Premium Quotations: Stated in dollars and fractions. Fractions of a dollar (A) in the case of a premium of less than $3, in I/ 16ths and (B) in the case of a premium greater than $3, in I/ 8ths.
Settlement: Next New York business day following expiration.
Position Limits: 25,000 contracts on the same side of the market, provided no more than 15,000 of such contracts are in the nearest expiration month series.
Minimum Margin: Option premium plus 15% of the aggregate Index value (Index value x 100) reduced by and for Uncovered Writers out-of- the-money amount to a minimum of premium plus 107o of the aggregate Index value.
Trading Hours: 9:30 a.m. to 4:15 p.m., New York time.
Trading System: Specialist/Registered Options Trader.
Index Base Ref. Point: 280.00 at the close of the market on April 2, 1990.
Cusip Number: 03112RIO9.
Trading Symbol: JPN for options with less than one year to expiration. Other symbols are used for options with more than one year to expiration.
The Final Settlement Valuation Symbol is JPV.