Options on the iShares MSCI EAFE Exchange Traded Fund
Underlying: The underlying for EFA Options is 100 shares of the iShares MSCI EAFE Exchange Traded Fund, an exchange-traded fund designed to track the performance of the MSCI EAFE? Index (Europe, Australasia, Far East). The MSCI EAFE Index is a capitalization-weighted index composed of stocks representing market characteristics of 21 countries in Europe, Australasia and the Far East. The MSCI EAFE? Index is recognized as the pre-eminent benchmark in the United States to measure international equity performance.
Strike Price Intervals: Strike prices are listed with minimum intervals of 1 point.
Strike (Exercise) Prices: In-, at- and out-of-the-money strike prices are initially listed. New strikes can be added as the index moves up or down.
Premium Quotation: Stated in decimals. One point equals $100. 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 immediately following the third Friday of the expiration month until February 15, 2015. On and after February 15, 2015, the expiration date will be 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® may also be available for trading.
Exercise Style: American - EFA Options generally may be exercised on any business day before expiration.
Settlement of Option Exercise: Physical Delivery. Exercise notices properly tendered on any business day will result in delivery of the iShares MSCI EAFE Exchange Traded Fund on the third business day following exercise.
Position Limit: 22,500 contracts on the same side of the market.
Margin: Uncovered writers must deposit 100% of the option proceeds plus 15% of the aggregate contract value (current index level multiplied by $100) minus the amount by which the option is out-of-the-money, if any. Minimum margin is 100% of the option proceeds plus 10% of the aggregate contract value. Long puts or calls must be paid for in full.
CUSIP Number: 46428765
Last Trading Day: Trading in EFA Options will ordinarily cease at the close on the business day (usually a Friday) preceding the expiration date.
Trading Hours: 8:30 a.m. to 3:15 p.m. Central Time (Chicago time).