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Strategies & Market Trends : The Final Frontier - Online Remote Trading

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From: TFF5/10/2008 9:55:23 AM
   of 12617
 
Fixed Return Options:

The American Stock Exchange trades Fixed Return Options (FRO's) on a number of securities. Fixed Return Options (FROs) are exchange traded binary or "cash or nothing" options based on an underlying security such as a stock or ETF. There are two types of FROs: Finish High FROs and Finish Low FROs. At expiration, an in-the-money FRO pays the holder of the option $100.00 per contract. For example, the holder of the XYZ June 20 Finish High FRO would receive $100.00 at expiration if the Amex FRO Settlement Index(SM) on the last trading day prior to expiration for XYZ was $20.01 or higher. If the Amex FRO Settlement Index(SM) closed at $20.00 or lower, the holder of the XYZ June 20 Finish High FRO would receive $0.00.

Underlying Name Symbol Amex FRO Settlement Index Symbol(s) Option Chain

Apple, Inc AAPL AXO
Cisco Systems, Inc CSCO CMQ
Citigroup Inc C EFH
DIAMONDS DIA DCQ
General Electric GE DOC
Goldman Sachs GS TLG
Google Inc CL.A GOOG TBA
Home Depot HD HEM
IBM IBM TSB
Intel INTC IDP
iShares MSCI Emerging Markets EEM PTT
iShares Russell 2000 Index Fund IWM DNZ
JP Morgan Chase JPM LIV
Microsoft CORP MSFT RIS
Oil Service HOLDRS OIH HKT
PowerShares QQQ QQQQ NKN
SPDR S&P 500 SPY SQY
Select Sector SPDR-Energy XLE LPA
Select Sector SPDR-Financial XLF RZP
Wachovia Corp WB BWK

amex.com
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