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Politics : Ask Michael Burke

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To: accountclosed who wrote (37458)	11/24/1998 1:03:00 PM
From: yard_man	Read Replies (1) of 132070

I was being flippant, but you can go to the CBOE site and see the puts for the IIX. I was looking yesterday at the 460's when the IIX was around 490 something and they were selling for about 1300 or so. As far as the multiple, I suppose it is just like any other option of the type. You buy a 460 and if the index goes to 450 -- you are 10 points in the money, i.e. have $1000 intrinsic value in the position (probably more volatility premium if you aren't too close to expiry). I think it is of the same type as the other index options -- settlement based on the closing prices the day before?

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