CBOE Index Workbench

License Agreement for Users of the Options Toolbox

NOTICE TO USER: THIS IS A LICENSE AGREEMENT BETWEEN YOU AND DERIVATECH CORPORATION ("DTC"). IT DESCRIBES YOUR RIGHT TO USE THE OPTIONS TOOLBOX® v5.0 SOFTWARE. IN THIS AGREEMENT THE TERM "OPTIONS TOOLBOX" REFERS TO ALL SOFTWARE HEREIN (INCLUDING THE INDEX WORKBENCH SM). PLEASE READ THIS AGREEMENT CAREFULLY. IF YOU AGREE TO BE BOUND BY THE TERMS AND CONDITIONS OF THIS AGREEMENT, PLEASE CLICK THE "ACCEPT" BUTTON AT THE END OF THIS AGREEMENT. IF YOU DO NOT AGREE TO THE TERMS AND CONDITIONS OF THIS AGREEMENT, PLEASE CLICK THE "DECLINE" BUTTON AT THE END OF THIS AGREEMENT AND DO NOT USE THIS SOFTWARE AND, IF YOU HAVE PAID FOR THIS SOFTWARE, PLEASE RETURN THE SOFTWARE TO YOUR POINT OF PURCHASE FOR A FULL REFUND.

The Options Toolbox® is the property of DTC. All rights not specifically granted to you hereunder are reserved by DTC. You are hereby granted the non-exclusive right to use The Options Toolbox on one computer at a time. You shall not make any copies of The Options Toolbox, other than back-up or archival copies. You shall not modify, alter, adapt, merge, decompile, disassemble or reverse engineer the program. You may transfer The Options Toolbox to another party only if that party agrees to accept the terms of this agreement and sends written acknowledgment of such acceptance to DTC at 400 South LaSalle Street, Chicago, Illinois 60605 and you deliver to that party, or destroy, the original program, any copy thereof, and any related materials or documentation. Any transfer other than as expressly permitted herein shall be void and result in the termination of this license. This license may only be modified or amended in writing, signed by you and DTC. This license will be terminated automatically if you violate any of its terms and may otherwise be terminated by DTC for cause upon written notice to you. This license constitutes the parties' final, complete and exclusive agreement with respect to The Options Toolbox.

THE OPTIONS TOOLBOX IS PROVIDED TO YOU "AS IS" WITHOUT WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO ANY
IMPLIED WARRANTY OF TITLE, NON-INFRINGEMENT, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, REGARDLESS OF WHETHER DTC KNOWS OR HAS REASON TO KNOW OF YOUR PARTICULAR NEEDS. IN ADDITION, NEITHER DTC OR ANY OTHER PERSON MAKES A WARRANTY THAT THE PROGRAM WILL RUN UNINTERRUPTED OR ERROR-FREE. YOU ARE SOLELY RESPONSIBLE FOR YOUR USE OF THE OPTIONS TOOLBOX.

IN NO EVENT WILL DTC OR ANY OTHER PERSON BE LIABLE TO YOU FOR DAMAGES INCLUDING, WITHOUT LIMITATION, ANY LOSS OF PROFITS, LOST SAVINGS, DAMAGE TO DATA OR OTHER INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF THE USE OR PERFORMANCE OF THE OPTIONS TOOLBOX, EVEN IF DTC OR SUCH OTHER PERSON HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, OR FOR ANY CLAIM BY ANY THIRD PARTY.

The Options Toolbox is provided with Restricted Rights. Use, reproduction or disclosure by the U.S. government is subject to the restrictions set forth in Sec. 52.227-19© of FAR.

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, which is available from your broker, by calling 1-800-OPTIONS, or from The Options Clearing Corporation, 440 S. LaSalle Street, 24th Floor, Chicago, IL 60605. The information in these materials is provided solely for general education and information purposes and therefore should not be considered complete, precise, or current. Many of the matters discussed are subject to detailed rules, regulations, and statutory provisions which should be referred to for additional detail and are subject to changes that may not be reflected in these materials. No statement within these materials should be construed as a recommendation to buy or sell a security or to provide investment advice.

The Options Toolbox is designed to assist individuals in learning how options work and in understanding various options strategies. The Options Toolbox is for educational purposes only and is not intended to provide investment advice. Commissions, taxes tracking error, and transaction costs generally are not included in the strategy discussions, but can affect final outcome and should be considered. Please contact a tax advisor for the tax implications involved in these strategies. The Options Toolbox has been prepared solely for informational purposes, based upon information generally available to the public from sources believed to be reliable, but no representation or warranty is given with respect to its accuracy or completeness. No statement herein should be construed as a recommendation to buy or sell a security or to provide investment advice. Any profit/loss diagrams refer only to approximate results at expiration. Past performance is no guarantee of future results.

The Options Toolbox is for educational purposes only. In some of its theoretical calculations, The Options Toolbox uses the Cox-Ross-Rubenstein binomial option pricing model. While this is among the most popular models used for option pricing, other models exists that consider different factors. No model can be entirely accurate. In addition, a number of simplifications have been made to the model - for instance with regard to dividend assumptions - and the results under various circumstances suggested by this calculator are likely to be different from the results suggested by other calculators. More importantly, The Options Toolbox is an educational tool intended to assist individuals in learning how options work, it is not intended to provide investment advice, and users of the calculator should not make investment decisions based upon values generated by the calculator.

LEAPS®, FLEX®, FLexible EXchange®, CBOE®, Chicago Board Options Exchange® and OEX® are registered trademarks and Long-term Equity AnticiPation SecuritiesTM, and SPXTM are trademarks of the Chicago Board Options Exchange, Inc.

Standard & Poor's®, S&P®, S&P100® and S&P500® are registered trademarks of The McGraw-Hill Companies and are licensed for use by the Chicago Board Options Exchange, Inc. ("CBOE"). Options based on the S&P 100 and S&P 500 are not sponsored, endorsed, sold or promoted by The McGraw-Hill Companies and The McGraw-Hill Companies makes no representation regarding the advisability of investing in such products.

"Dow Jones SM" and "Dow Jones Industrial Average SM", "Dow Jones Transportation Average SM", "Dow Jones Utility Average SM", "Options on The Dow SM" and "The Dow SM" are service marks and "Dow Jones Averages®", is a registered mark of Dow Jones & Company, Inc. and these have been licensed for certain purposes by the CBOE. CBOE's options based on the Dow Jones Averages are not sponsored, endorsed, sold or promoted by Dow Jones, and Dow Jones makes no representation regarding the advisability of investing in such products.

The Nasdaq-100 Index®, Nasdaq National Market®, and Nasdaq® are registered marks and The Nasdaq Stock MarketSM, NDXSM and NDSSM are service marks of The Nasdaq Stock Market, Inc. These marks are licensed for use by the Chicago Board Options Exchange, Inc. in connection with the trading of options based on the Nasdaq-100 Index. Such options have not been passed on by The Nasdaq Stock Market, Inc. or its affiliates as to their legality or suitability, and such options are not issued, endorsed, sold or promoted by The Nasdaq Stock Market, Inc. or its affiliates. For any options that are based on reduced values of the Nasdaq-100 Index®, CBOE is solely responsible for calculating and disseminating such reduced values from the corresponding values of the Nasdaq-100 Index®, and neither The Nasdaq Stock Market, Inc. nor any of its affiliates shall have any liability arising out of the calculation or dissemination of such reduced values. THE NASDAQ STOCK MARKET, INC. OR ITS AFFILIATES MAKES NO WARRANTIES AND BEARS NO LIABILITY WITH RESPECT TO SUCH OPTIONS.

The Russell 2000® Index is a registered trademark of Frank Russell Company.

The Goldman Sachs Technology Indexes are the property of Goldman, Sachs & Co. (Goldman Sachs) and have been licensed to the Chicago Board Options Exchange in connection with the trading of options based upon the indexes. Goldman Sachs assumes no liability in connection with the trading of any contract based upon any of the indexes. GSTI is a trademark of Goldman, Sachs & Co.

For complete information about iSharesSM, request a prospectus by calling 1-800-iSHARES (1-800-474-2737). Read it carefully before investing. Equity investments involve risks, including possible loss of principal. iShares are distributed by SEI Investments Distribution Co. Barclays Global Fund Advisors serves as an advisor to iShares and is a subsidiary of Barclays Global Investors, N.A., (BGI) neither of which is affiliated with SEI. iShares are not sponsored, endorsed, sold, or promoted by Standard & Poor's. Nor does this company make any representation regarding the advisability of investing in iShares. iShares is a servicemark of Barclays Global Investors, N.A.. All other trademarks, servicemarks or registered trademarks are the property of their respective owners. iShares are not FDIC insured, have no bank guarantee, may lose value, and are not guaranteed to exactly match the performance of the underlying index.

The Options Toolbox IS DESIGNED TO BE USED IN CONJUNCTION WITH TEXTS AND OTHER EDUCATIONAL MATERIALS.

Options involve risk and are not suitable for all investors. Prior to buying or selling options, a person must receive a copy of Characteristics and Risks of Standardized Options, which is available from The Options Clearing Corporation, One North Wacker Dr., Suite 500, Chicago, IL 60606, or by calling 1-888-OPTIONS.

Please note that futures on the CBOE Volatility Index® (VIX®) were introduced in 2004 after the methodology for VIX was changed; please visit www.cboe.com/vix for volatility updates that might not be reflected on this CD-ROM.

This discussion is designed to assist individuals in learning how options work and in understanding various options strategies. This discussion is for educational purposes only and is not intended to provide investment advice. Commissions, taxes and transaction costs generally are not included in the strategy discussions, but can affect final outcome and should be considered. Please contact a tax advisor for the tax implications involved in these strategies.
This discussion has been prepared solely for informational purposes, based upon information generally available to the public from sources believed to be reliable, but no representation or warranty is given with respect to its accuracy or completeness. No statement herein should be construed as a recommendation to buy or sell a security or to provide investment advice. Any profit/loss diagrams refer only to approximate results at expiration. Past performance is no guarantee of future results.

S&P 100® and S&P 500® are registered trademarks of the McGraw-Hill Companies, Inc., and are licensed for use by the Chicago Board Options Exchange, Inc. ("CBOE"). The Russell 2000® Index is a registered trademark of Frank Russell Company. The Nasdaq 100® is a registered mark of The Nasdaq Stock Market, Inc. "Dow Jones SM", "Dow Jones Industrial AverageSM", "Dow Jones Transportation AverageSM," and "Dow Jones Utility AverageSM" are service marks of Dow Jones & Company, Inc. and have been licensed for certain purposes by the CBOE. iSharesSM is a servicemark of Barclays Global Investors. The Goldman Sachs Technology Indexes are the property of Goldman, Sachs & Co. and have been licensed to the CBOE in connection with the trading of options based upon the indexes. Dow Jones & Co., The Nasdaq Stock Market, Goldman Sachs, and McGraw-Hill make no warranties and bear no liability in regard to the trading of index options.VIX®, CBOE Volatility Index® LEAPS®, FLEX®, FLexible EXchange® and OEX® are registered trademarks and Long-term Equity AnticiPation SecuritiesTM and SPXTM are trademarks of the Chicago Board Options Exchange, Inc.

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