The Morgan Stanley Index options family (Biotech, Retail and Oil Services) consists of large actively traded stocks that, based on the research of Morgan Stanley, are the leading companies in their respective sectors. CBOE is the leader in index option trading and is pleased to offer three more sector-specific index products which investors can use to enhance their portfolios. | |
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Morgan Stanley Biotech Index (MVB), Morgan Stanley Oil Services Index (MGO) and Morgan Stanley Retail Index (MVR) are equal dollar weighted, meaning that the component securities are represented in approximate equal dollar values. The indexes are re-balanced quarterly after the close of trading on the third Friday of March, June, September, and December. Index divisors were initially calculated to yield a benchmark valued of 100.00 on June 15, 2001. If necessary, a divisor adjustment is made to ensure continuity of the index value. The newly adjusted portfolio becomes the basis for the index value on the first day following the quarterly adjustment. The number of shares of each component stock in the index will remain fixed between quarterly reviews except in the event of certain types of corporate actions. Morgan Stanley Index Options, with European-style exercise, are calculated based on the opening prices of component securities on the business day prior to expiration, and are cash settled. | |
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| The index consists of 36 American biotech stocks. Included in this group are companies with the following therapeutic focuses: cancer, cardiovascular, inflammation and infectious disease. Some of the companies included in the index are Cubist Pharmaceuticals Inc. (CBST), Genzyme Corp. (GENZ) and Cell Therapeutics (CORR). | |
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| This Index consists of 30 oil services stocks. Included in this group are companies in the following sectors: diversified oil services, service specialists, equipment specialists, tubular manufacturers, offshore-drillers, land-drillers, supply vessels, seismic specialists, and offshore construction. Included in the index are Baker Hughes Inc. (BHI), Schlumberger Limited (SLB), Petroleum Geo-Services A/S (PGO). | |
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| This Index consists of 38 leading retailers. Included in this group are companies in broadline, hardline and specialty retail. Nordstrom, Inc. (JWN), Office Depot (ODP), K-Mart (KM) are included in this index. | |
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| The CBOE is committed to providing investors of all levels with the most extensive options investment opportunities. The Morgan Stanley Index options family is a fine example of the quality offerings investors have come to expect from the world's largest options marketplace and creator of listed options.
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| Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options. Copies of this document are available from your broker or The Options Clearing Corporation, 400 S. LaSalle Street, Chicago, IL 60605.
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