The new options will be listed on the shares of Enterprise Oil plc, London Stock Exchange plc, P&O Princess Cruises plc and Shire Pharmaceuticals Group plc. These latest contracts have been added in response to market demand, and bring the total number of Individual Equity Options on UK companies listed by LIFFE to 94.
The market for equity options is growing quickly. In 2001, the volume of Individual Equity Options traded on LIFFE showed a 95 per cent increase over 2000. This growth has continued into 2002, with 1,290,468 contracts traded in January, a new trading record and a 60 per cent increase in volumes over January 2001. On Wednesday 27 February 2002, open interest for these contracts stood at 2,158,522.
LIFFE's Head of Equities, Jonathan Seymour said: "Individual Equity Options provide exposure to the equity market for a fraction of the cost of dealing in the underlying shares. They allow investors to hedge existing share portfolios and take bullish or bearish positions on stocks, a particularly useful feature in volatile markets."
