Stock options 2009 1500 different issues cboe cboe

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Unformatted text preview: ) (CBOE) Stock 1. 2. B. B. Exercise (settlement involves stock delivery). Exercise also involves paying a commission on the purchase of stock. Index Options: settlement in CASH 1. "OEX" S&P 100: Value is exercise price times 100 2. Options available on all major market indexes 3. Advantages of Index Option Trading a. b. b. Cash settlement permits trading w/o necessity to make/take Cash delivery. Options cover the market as a whole. Options All Rights Reserved Dr David P Echevarria 10 TYPES OF OPTIONS C. Trading Costs 1. 2. 2. 3. Clearing fees Clearing Bid-Ask spread Broker commissions All Rights Reserved Dr David P Echevarria 11 REGULATION OF OPTIONS MARKETS A. SEC is primary regulator for options on SEC stocks, foreign currencies, and indexes. a. a. B. B. C. C. CFTC is primary regulator for futures options. CFTC Exchanges also have rules, particularly in Exchanges regards to capital requirements. OCC also has certain rules for member firms OCC to follow. All Rights Reserved Dr David P Echevarria 12 MARGIN REQU...
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