Index Long-term Equity AnticiPation Securities Specifications
| Description | Index Long-term Equity AnticiPation Securities (LEAPS) are put and call options on underlying indexes that have expirations of as long as three years from the time of listing. Conventional options are also traded on indexes for which LEAPS are available. |
| Trading Unit | The minimum trade size is one option contract. The notional value underlying each contract equals 100 multiplied by the underlying Index value. |
| Expiration Cycle | LEAPS currently have expirations in January 2008 and January 2009. |
| Expiration | The Saturday following the third Friday of the expiration month. |
| Last Trading Day | One business day prior to expiration (normally a Friday). |
| Exercising Options | Exercise style may be either American or European. Please check the specification sheet for a particular index option to determine whether it may be exercised at any time (American) or only at expiration (European). |
| 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 approximately 25% above, at and 20% below the value of the Index. |
| 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. Beginning on or about 01/26/07, some option classes will have different MPVs. For more information, view Amex's participation in the Penny Pilot Program. |
| Settlement of Exercise | Next business day following expiration. |
| Position Limits | Must be aggregated with conventional options on the same underlying Index. Hedge exemptions available. |
| 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 | Varies by index. Refer to the specification sheets for more detailed information. |
| Trading System | Specialist/Registered Options Trader. |