| Description of Index |
The Amex Hong Kong Option Index is a broad-market index that measures the composite price performance of 30 stocks actively traded on The Stock Exchange of Hong Kong Ltd. (HKSE), designed to reflect the movement of the Hong Kong stock market as a whole. The Amex Hong Kong Option Index is based on approximately 40% of the value of the Amex Hong Kong 30 Index, established June 25, 1993 with a benchmark value of 350.00. The Amex Hong Kong Option Index is calculated and disseminated each New York business day based on the most recent official closing price of each of the component stocks as reported by the HKSE and a floating currency exchange rate (the previous day's HK$/US$ exchange rate). |
| Components |
For Index components click here. |
| Trading Unit |
The minimum trade size is one option contract. The notional
value underlying each contract equals $100 multiplied by the Index
value. |
| Expiration Cycle |
Three consecutive near-term expiration months plus two successive months from the March cycle. |
| Expiration |
The Saturday following the third Friday of the expiration
month. |
| Last Trading Day |
Two business days prior to expiration (normally a Thursday). |
| Exercising Options |
European style. Options may be exercised only on the last business day prior to expiration (normally a Friday). Writers are subject to assignment only at expiration. Check with your broker to ascertain cut-off times for exercise and provisions for automatic exercise. |
Delivery Method
if Exercised |
Cash settlement based on the dollar difference
between the final settlement value of the Index and the strike price
of the contract multiplied by $100. |
| Exercise Price Intervals |
Exercise (strike) prices are set at $5.00 intervals, bracketing the current value of the Index, when the Index is above 200. If the Index is below 200, the interval will be $2.50. |
| Option Premium Quotations |
Stated in dollars and cents. Minimum price variant $0.05 (nickel) for series trading under $3.00 and $0.10 (dime) for series trading $3.00 and above. |
| Index Settlement Value |
Determined on the last business day prior to expiration,
based on the closing prices of the component stocks on the HKSE on
the last business day prior to expiration and the exchange rate established
approximately 11:30 a.m. New York time two business days prior to expiration. |
| Settlement of Exercise |
Next business day following expiration. |
| Position Limits |
25,000 contracts on the same side of the market, provided that no more than 15,000 of such contracts are in the nearest expiration month series. |
Minimum Customer Margin
for Uncovered Writers |
100% of the market value of the option plus 20% of the aggregate Index value less any out-of-the-money amount, subject to a minimum of 100% of the market value of the option plus 10% of the aggregate Index value. |
| Trading Hours |
9:30 a.m. to 4:15 p.m., New York time. |
| Trading System |
Specialist/Registered Options Trader. |
| Trading Symbol |
HKO |
| Final Settlement Value Symbol |
KDY |
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