CHICAGO, May 13, 2002 - The Chicago Board Options Exchange (CBOE) today announced that it will add options on DIAMONDS® (ticker symbol DIA) to its list of products, beginning Monday, May 20, 2002. DIAMONDS are shares in an exchange-traded fund designed to track the performance of the Dow Jones Industrial Average (DJIA). Options on DIAMONDS provide investors with exposure to the DJIA in one transaction that can also offer the benefit of limited risk. Buyers of DIA options have pre-determined risk that is limited to the amount of premium paid.
Additionally, CBOE announced that it has renewed its licensing agreement with Dow Jones & Company, Inc. to trade Options on The Dow (DJX), and other Dow Jones Indexes. Exclusively traded at CBOE since 1997, DJX options have shown explosive growth over the past twelve months, regularly placing as one of the exchange's most actively-traded index products. With the addition of DIAMONDS, CBOE now lists seven Dow Jones products.
David Moran, president of Dow Jones Indexes, commented, "CBOE remains the number one marketplace in the world for listed options and its members have built an excellent trading environment for options based on The Dow Jones Industrial Average. Their unique, sophisticated hybrid trading floor continue to boost volumes on the The Dow contract. With the Dow Jones Industrial Average and the Dow Jones Euro STOXX 50, Dow Jones has the most recognized blue chip indexes on two continents. We are confident that investor demand for products linked to these leading indexes will continue to grow."
"CBOE is pleased to offer options on the DIAMONDS in response to customer demand," said CBOE Chairman and CEO William J. Brodsky. "We are especially pleased to continue our business relationship with the Dow Jones Company, as we both strive to find new ways to create a variety of investment vehicles that will best serve the needs of today's investors."
DIA options will represent 100 shares of the underlying DIAMONDS Trust, Series I, will be American style exercise and settled in physical delivery. DIA will trade on the March expiration cycle with introductory expirations in June, July, August, September, December 2002 and March 2003. Long-term Equity AnticiPation Securities (LEAPS) with expiration in December 2003 will also be offered. Initial strike prices will range from 64 to 140. DIA options will trade in decimals and customer orders of 250 contracts and less are eligible for electronic execution on CBOE's Retail Automatic Execution System (RAES).
DJX options are based on 1/100th the value of the Dow Jones Industrial Average, are European style exercise and are settled in cash. DJX options are available electronically in pre-market trading from 7:00 a.m. to 8:15 a.m. (Central time) on CBOEdirect, and via the open outcry market from 8:30 a.m. to 3:15 p.m., with customer orders of 250 contracts and less available for electronic execution via RAES.
CBOE also offers options on the Dow Jones Transportation Average (DTX), Utility Average (DUX), REIT (DJR), Internet Commerce (ECM), and the Dow 10 (MUT) indexes.
For more information, including contract specifications, on the Dow Jones index options and the other 32 index option products offered at CBOE, please visit http//:www.cboe.com/OptProd/ProductSpecs.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.
CBOE®, Chicago Board Options Exchange® and LEAPS® are registered trademarks of Chicago Board Options Exchange, Incorporated. CBOEdirectTM and Long-term Equity AnticiPation SecuritiesTM are trademarks of Chicago Board Options Exchange, Incorporated.
DIAMONDS® is a registered trademark of Dow Jones & Company, Inc. Dow JonesSM , Dow Jones Industrial AverageSM, DJIASM, Options on the Dow,SM are service marks of Dow Jones & Company, Inc., and have been licensed for certain purposes by the Chicago Board Options Exchange, Inc. Options based on the Dow Jones Indexes are not sponsored, endorsed, sold or promoted by Dow Jones, and Dow Jones makes no representation regarding the advisability of investing in such products.
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