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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: re3 who wrote (94692)	2/26/2002 9:04:36 AM
From: Tommaso	Respond to of 132070

Since I hold these, I ought to know, but I don't, because I have no intention of exercising them or holding them until expiry. Without looking it up again, my memory is that they become excercisable for cash at expiry--the difference between the Dow on that date and the strike of the put. I suppose it might save some money to have the put settled on expiry rather than selling and losing the spread. Like you, I would like to hear from anyone who has actually done this: Is it automatic or do you have to explain to your broker what is happening? Here's from a page on the CBOE site: Dow Jones Industrial Average (DJX) Symbol: DJX Index Description: The Dow Jones Industrial Average is a price-weighted index composed of 30 of the largest, most liquid NYSE and NASDAQ listed stocks. Underlying Level: Options are based on 1/100th of the DJIASM level. Multiplier: $100 Premium Quote: Stated in decimals. One point equals $100. Minimum tick for options trading below 3.00 is 0.05 ($5.00) and for all other series, 0.10 ($10.00). Strike Prices: Strike prices for options are set to bracket the index level in minimum increments of 1 point. Expiration Cycle: Generally, up to three near-term months plus up to 3 months on the March quarterly cycle. Expiration Date: Saturday following the third Friday of the expiration month. Last Trading Day: Trading in DJX will ordinarily cease on the business day (usually a Thursday) preceding the day on which the exercise-settlement value is calculated. Exercise Style: European. Settlement Value: Calculated based on the opening prices of the component securities on the business day prior to expiration, usually a Friday. The exercise-settlement amount is equal to the difference between exercise-settlement value and the exercise price of the option, multiplied by $100. Settlement Value Symbol: DJS Settlement: Cash-settled cboe.com