| Index LEAPS are long-term options generally based on a reduced value of an underlying broad-based, industry sector or international index and have expirations of up to three years. With the exception of their longer-term expiration, Index LEAPS work in the same manner as all other broad-market index options with exercises only permitted on the last business day prior to expiration (European style) and settlement with the payment of cash, not the delivery of securities.
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| Index LEAPS series are introduced based upon exercise cycles. Two initial strike (exercise) prices are set bracketing the LEAPS' index value. New strike prices are introduced when the value of the index underlying the LEAPS moves 10 to 15 percent.
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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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