| Equity LEAPS are put and call options on selected common stocks, American Depositary Receipts, exchange traded funds and HOLDRS that have expirations of up to three years. These long-term options give holders the right to purchase (with calls) or sell (with puts) shares of an underlying stock at a specified price on or before a given date up to three years in the future. With the exception of their longer-term expiration, Equity LEAPS work in the same manner as other exchange-listed stock options, and may be exercised on any business day prior to expiration (American style).
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| Equity LEAPS series are introduced based on expiration cycles. Initial strike (exercise) prices are set at approximately 25 percent above, at and 20 percent below the underlying stock's price at the time of options' listing. This provides the versatility of in-, at- and out-of-the-money puts and calls.
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| LEAPS meld into their conventional shorter-term options within one year of expiration.
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Contract Specification  |
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