"CBOE created these two indexes to give investors an efficient and economical means to trade a US-dollar-settled ADR index that represents the most actively traded European, and Asian stocks," said CBOE Executive Vice-President Edward Provost. "CBOE is pleased to now make these investment alternatives available, on a U.S. exchange, to our customers."
Both EOR and EYR are composed of 25 actively traded American Depository Receipts (ADRs), New York Registered Shares (NYSs) or NYSE Global Shares ® (NGSs) traded on U.S. securities exchanges.
Both new indexes are market-capitalization weighted indexes and will be re-balanced quarterly following the expiration of the index option contracts. January 2, 2002 is the base date for both indexes, with 100 set as the base level.
CBOE will calculate and disseminate the index values continuously throughout the trading day and the options will trade during regular US trading hours only (8:30 a.m. to 3:15 p.m. Chicago time).
EOR and EYR options are European-style exercise, settled in cash, with position limits of 50,000 contracts on either side of the market. EOR and EYR will trade on the March expiration cycle with introductory expirations in April, May, June and September. Timber Hill was named the Designated Primary Market Maker (DPM) for both indexes.
Initial strike prices for EOR are: 50, 55, 57.5, 60, 62.5, 65 and 70.BR> Initial strike prices for EYR are: 55, 60, 62.5, 65, 67.5, 70 and 75.
This month CBOE celebrated the anniversary of 20 years of trading Index options. CBOE created and listed the first index options on March 11, 1983 and today lists options on 32 indexes. For more information, including contract specifications, on CBOE's Index products, please visit:
http://www.cboe.com/OptProd/IndexOptions.asp"
CBOE, the world's largest options marketplace and the creator of listed options, is regulated by the Securities and Exchange Commission (SEC). For additional information about the CBOE and its products, access the CBOE website at http://www.cboe.com/.
