Product Specifications

Morgan Stanley Retail Index Options

Symbol:
MVR

Underlying:
The Morgan Stanley Indexes (Biotech, Retail and Oil Services) consist of large and actively traded stocks that, based on the research of Morgan Stanley Dean Witter, are the leading companies in their respective sectors. Each Index is 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 value of 100.00 on June 15, 2001.

Index Components

Multiplier:
$100.

Strike Prices:
In-, at- and out-of-the-money strike prices are initially listed. New series are generally added when the underlying trades through the highest or lowest strike price available. The strike price interval will be 2.5 points if the index level is below 200, 5 points otherwise.

Premium Quote:
Stated in decimals. One point equals $100. The minimum tick for options trading below 3.00 is 0.05 ($5.00) and for all other series, 0.10 ($10.00).

Expiration Date:
Saturday following the third Friday of the expiration month.

Expiration Months:
Up to three near-term months plus up to 3 months on the March quarterly cycle. LEAPS with expirations up to five years in the future may also be listed.

Exercise Style:
European - The options generally may be exercised only on the last business day before expiration.

Last Trading Day:
Trading will ordinarily cease on the business day (usually a Thursday) preceding the day on which the exercise-settlement value is calculated.

Settlement of Option Exercise:
The exercise settlement value, MXJ, is calculated based on the opening prices of the component securities on the business day prior to expiration. Cash settled.

Position and Exercise Limits:
31,500 contracts on the same side of the market.

Margin:
Purchases of puts or calls with 9 months or less until expiration must be paid for in full. Writers of uncovered puts or calls must deposit / maintain 100% of the option proceeds* plus 20% of the aggregate contract value (current index level x $100) minus the amount by which the option is out-of-the-money, if any, subject to a minimum for calls of option proceeds* plus 10% of the aggregate contract value and a minimum for puts of option proceeds* plus 10% of the aggregate exercise price amount. (*For calculating maintenance margin, use option current market value instead of option proceeds.) Additional margin may be required pursuant to Exchange Rule 12.10.

Cusip Number:
MVR - 14984H 4

Trading Hours:
8:30 a.m. - 3:00 p.m. Central Time (Chicago time).

Position and Exercise limits are subject to change.