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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: browser who wrote (17825)	9/28/1998 9:41:00 PM
From: Clint E.	Read Replies (1) \| Respond to of 70326

Browser; I checked with the cboe site as well because I couldn't trust the other site. Yes, it is European after all. cboe.com Here is what they say: ===================================== ------------------------------------- Are DJX options European or American-style? DJX options are European-style. This means they can be exercised only on expiration. DJX options, available in up to 3 near-term months plus up to 3 months on quarterly cycle, expire on a monthly basis. The expiration date is the Saturday following the third Friday of the expiration month. The settlement value is calculated based on the opening prices of the component securities in the index on the business day prior to expiration. This value is calculated by Dow Jones & Company, Inc. DJX options are cash-settled. This means that cash is delivered at settlement, not securities. ------------------------------------- How does options exercise/assignment work with DJX options? Although the value of a DJX option is based on the value of the DJIA, investors will not receive stocks, or have to deliver stocks, if the options are exercised. As European-style options, DJX contracts can only be exercised on expiration. Investors will receive cash if the option has value at expiration and it is exercised. This is known as cash-settlement. This is a key difference between index and equity options. Equity options can be exercised as a means to buy or sell the underlying stock. The process is different with index options because they are cash-settled. When a DJX option is exercised, the option holder receives the in-the-money amount in cash, and the option writer pays that amount. ------------------------------------- Do DJX options have to be held until expiration? No, DJX options don't have to be held until expiration. They can be bought and sold in the open market at any time up to two business days before expiration. However, as European-style options, DJX options can be exercised only on expiration. ===================================== So, you can hold on til Dec. or sell your options before then. It is all up to you. Good luck; Clint