HKEx: Stock Exchange Narrows Strike Intervals For Selected Option Classes

The Stock Exchange of Hong Kong Limited, a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx), will narrow the strike intervals in the spot month and next calendar month for Options on Cheung Kong (Holdings) Ltd, Hutchison Whampoa Ltd and Sun Hung Kai Properties Ltd from 31 October 2003.

This follows the favourable market response to the implementation of narrower strike intervals for Options on HSBC Holdings plc and Hang Seng Bank Limited in April this year.

Example:

If underlying price of Options on Cheung Kong (Holdings) Ltd is $63.25, the strike series currently available for both puts and calls for the next calendar contract month is $55.00, $60.00, $65.00, $70.00, $75.00.

After implementation of narrower strike intervals, $57.50, $62.50, and $67.50 will be added.