Pharmaceutical Index Options

Index Components: The Index is market-value weighted ("capitalization weighted") based on the aggregate market value of 15 issues. (see components)

Trading Unit: The Index value multiplied by $ 100.

Expiration Cycle: Three consecutive near-term expiration months plus two successive months from the January cycle. Long-term options with up to 36 months to expiration may be available.

Expiration: The Saturday following the third Friday of the expiration month.

Last Trading Day: Two business days prior to expiration (normally Thursday).

Limited Exercise: European style. Options may be exercised only on the last business day prior to expiration. Writers are subject to assignment only at expiration.

"Delivery " Method: If exercised, Cash settlement based on the dollar difference between the final settlement value of the Index and exercise price of the contract multiplied by $ 100. The settlement value is determined on the last business day prior to expiration and for each component stock will be the price of the first (opening) regular way transaction of the day.

Exercise Prices: Exercise (strike) prices are set at five-point intervals to bracket the current value of the Index. New exercise prices are added as the Index moves.

Premium Quotations: Stated in dollars and fractions. Fractions of a dollar for premiums of less than $3, in I/ 16ths; for premiums greater than $3, in 1/8ths.

Settlement: Next business day following expiration.

Position Limits: 6,000 contracts on the same side of the market.

Minimum Margin: As with all industry-based indexes, premium plus 20% of the aggregate Index value (Index value for Uncovered Writers x $ 100) minus the amount by which the option is out-of- the-money, if any. Minimum margin is the premium plus 10% of the Index aggregate value.

Trading Hours: 9:30 a.m. to 4: 10 p.m., New York time.

Trading System: Specialist/Registered Options Trader.

Cusip Number: 716929104

Trading Symbol: DRG. Final Settlement Valuation Symbol: DRO.


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