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10 Cards in this Set
- Front
- Back
Yield based options trade on the (13 week T bills) (30 yr Tbonds) 5(FVX) and 10 yr treasury notes |
CBOE |
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Yield based options have a contract multiplier of |
$100 |
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Settlement of yield based is |
next day in cash |
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Exercise settlement value is the |
current yield on the underlying security multiplied by 10 |
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Yield based options are exercised European style |
Only on the trading day before expiration |
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Narrow based index reflects a composite price on a group of stocks |
within a specific industry |
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Broad based indexes typically trade |
from 9:30 am to 4:15 and have no exercise limits |
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Narrow based index options such as oil or gold |
typically trade from 9:30am to 4:00pm ET |
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The commodity exchange act defines a narrow based security index as having |
9 or fewer components |
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Cash value of an index option is determined by multiplying the current index price by |
a predetermined multiplier, usually 100 |