INDEX OPTIONS Information Circular - American Stock Exchange LLC

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Dec 1, 2012 (4 years and 6 months ago)

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INDEX OPTIONS
Information Circular
#02-0108 Derivative Securities

Date February 12, 2002
To Members, Member Organizations &
Registered Option Principals
From Gabrielle Capelli, Options Manager
Subject New Index Option Listing —
The NASDAQ Biotechnology Index (NBI)


The Exchange is pleased to announce that on Wednesday,
February 13, 2002, trading will commence in put and call
options on The NASDAQ Biotechnology Index under the ticker
symbol NBI. The options have been allocated to the Specialist
Unit of Bowery Specialist Group, LLC and will trade at Post 22.

The NASDAQ Biotechnology Index
The NASDAQ Biotechnology Index is a modified market
capitalization-weighted index designed to measure the
performance of all NASDAQ stocks in the biotechnology sector.
The NASDAQ Biotechnology Index is, as of 2/13/2002,
composed of shares of the following 70 component issues:

Abgenix, Inc. (ABGX) ILEX Oncology, Inc. (ILXO))
Affymetrix, Inc. (AFFX) ImClone Systems Incorporated (IMCL)
Albany Molecular Research, Inc. (AMRI) Immunex Corporation (IMNX))
Alexion Pharmaceuticals, Inc. (ALXN) ImmunoGen, Inc. (IMGN)
Alkermes, Inc. (ALKS) Immunomedics, Inc. (IMMU))
Amgen Inc. (AMGN) Incyte Genomics, Inc. (INCY)
Antigenics Inc. (AGEN) Inhale Therapeutic Systems, Inc.
(INHL)
Arena Pharmaceuticals, Inc. (ARNA) InterMune Inc. (ITMN)
ArQule Inc. (ARQL) Invitrogen Corporation (IVGN)
Atrix Laboratories, Inc. (ATRX) Isis Pharmaceuticals, Inc. (ISIP)
Avigen, Inc. (AVGN) Luminex Corporation (LMNX)
Biogen, Inc. (BGEN) Medarex, Inc. (MEDX)
Caliper Technologies Corp. (CALP) The Medicines Company (MDCO)
Celgene Corporation (CELG) MedImmune, Inc. (MEDI)
Cell Genesys, Inc. (CEGE) Millennium Pharmaceuticals Inc(MLNM)
Cell Therapeutics, Inc. (CTIC) Myriad Genetics, Inc. (MYGN)
Cephalon, Inc. (CEPH) NeoPharm, Inc. (NEOL)
Chiron Corporation (CHIR) Neurocrine Biosciences, Inc. (NBIX)
Corixa Corporation (CRXA) NPS Pharmaceuticals, Inc. (NPSP)
Cubist Pharmaceuticals, Inc. (CBST) OSI Pharmaceuticals, Inc. (OSIP)
CuraGen Corporation (CRGN) Pharmacopeia, Inc. (PCOP)
CV Therapeutics, Inc. (CVTX) PRAECIS Pharmaceuticals Inc.
(PRCS)
Emisphere Technologies, Inc. (EMIS) Protein Design Labs, Inc. (PDLI)
EntreMed, Inc. (ENMD) QLT Inc. (QLTI)
Enzon, Inc. (ENZN) Regeneron Pharmaceuticals (REGN)
Exelixis, Inc. (EXEL) Scios Inc. (SCIO)
Gene Logic Inc. (GLGC) SuperGen Inc. (SUPG)
Genta Incorporated (GNTA) Tanox, Inc. (TNOX)
Genzyme Corp. General Division (GENZ) Transkaryotic Therapies, Inc. (TKTX)
Geron Corporation (GERN) Trimeris, Inc. (TRMS)
Gilead Sciences, Inc. (GILD) Tularik Inc. (TLRK)
Guilford Pharmaceuticals Inc. (GLFD) United Therapeutics Corp. (UTHR)
Human Genome Sciences, Inc. (HGSI) VaxGen, Inc. (VXGN)
ICOS Corporation (ICOS) Vertex Pharmaceuticals Inc. (VRTX)
IDEC Pharmaceuticals Corporation (IDPH) ViroPharma Incorporated (VPHM)

The value of The NASDAQ Biotechnology Index is computed
continuously using the last sale for each component stock and
is disseminated every 15 seconds throughout each business
day under the ticker symbol NBI.

The NASDAQ Biotechnology Index Options
Options on The NASDAQ Biotechnology Index will be subject to
all Options Clearing Corporation and Exchange Rules that are
applicable to the trading of options on narrow-based stock
indexes. (See Amex Rules 900C-980C).

Expiration Months/Exercise Style/Cash Settlement
Options on The NASDAQ Biotechnology Index will expire on the
Saturday following the third Friday of an expiration month. The
last day of trading for such contracts will be the second to last
business day prior to expiration (normally Thursday). Options
on The NASDAQ Biotechnology Index will feature European
style exercise, thus, they can be exercised only on Expiration
Friday (the day prior to expiration).

Like all standardized index options currently trading, options on
The NASDAQ Biotechnology Index will be settled in cash by
payment of the dollar difference between the exercise price of
the option and the Index settlement value. The final settlement
value for options on The NASDAQ Biotechnology Index will be
calculated on the basis of opening market prices on the last

business day (normally Friday) prior to expiration, and will be
disseminated under the ticker symbol NBZ.
The Exchange has the authority to list The NASDAQ
Biotechnology Index options with three consecutive near-term
expiration months plus two successive months from the March
cycle. Exercise prices for options on The NASDAQ
Biotechnology Index may be set at 2 ½ point intervals to bracket
the Index’s current value when that value is below 200, and at 5
point intervals to bracket the Index’s current value when that
value is above 200. Additional exercise prices will be added
when the value of the Index changes. The following initial
expiration months and strike prices will be available for trading
as of Wednesday, February 13, 2002:

Expiration Strike Symbol Codes CUSIP
Month
Prices
Calls
Puts
Number

MAR 600 NBICT NBIOT 63109R108
620 NBICD NBIOD
640 NBICH NBIOH
660 NBICL NBIOL
680 NBICP NBIOP

700 NBTCT NBTOT
720 NBTCD NBTOD
740 NBTCH NBTOH
760 NBTCL NBTOL
780 NBTCP NBTOP

800 NFRCT NFROT
820 NFRCD NFROD
840 NFRCH NFROH
860 NFRCL NFROL
880 NFRCP NFROP



APR 600 NBIDT NBIPT
620 NBIDD NBIPD
640 NBIDH NBIPH
660 NBIDL NBIPL
680 NBIDP NBIPP

700 NBTDT NBTPT
720 NBTDD NBTPD
740 NBTDH NBTPH
760 NBTDL NBTPL
780 NBTDP NBTPP

800 NFRDT NFRPT
820 NFRDD NFRPD
840 NFRDH NFRPH
860 NFRDL NFRPL
880 NFRDP NFRPP


MAY 600 NBIET NBIQT
620 NBIED NBIQD
640 NBIEH NBIQH
660 NBIEL NBIQL
680 NBIEP NBIQP

700 NBTET NBTQT
720 NBTED NBTQD
740 NBTEH NBTQH
760 NBTEL NBTQL
780 NBTEP NBTQP

800 NFRET NFRQT
820 NFRED NFRQD
840 NFREH NFRQH
860 NFREL NFRQL
880 NFREP NFRQP


JUN 600 NBIFT NBIRT
620 NBIFD NBIRD
640 NBIFH NBIRH
660 NBIFL NBIRL
680 NBIFP NBIRP

700 NBTFT NBTRT
720 NBTFD NBTRD
740 NBTFH NBTRH
760 NBTFL NBTRL
780 NBTFP NBTRP

800 NFRFT NFRRT
820 NFRFD NFRRD
840 NFRFH NFRRH
860 NFRFL NFRRL
880 NFRFP NFRRP


SEP 600 NBIIT NBIUT
620 NBIID NBIUD
640 NBIIH NBIUH
660 NBIIL NBIUL
680 NBIIP NBIUP

700 NBTIT NBTUT
720 NBTID NBTUD
740 NBTIH NBTUH
760 NBTIL NBTUL
780 NBTIP NBTUP

800 NFRIT NFRUT
820 NFRID NFRUD
840 NFRIH NFRUH
860 NFRIL NFRUL
880 NFRIP NFRUP



Position and Exercise Limits/Trading Hours/ Specialist
Allocation
Position and exercise limits for options on The NASDAQ
Biotechnology Index will be 31,500 contracts on the same side
of the market. Hedge exemptions may also be available. Since
the Index is classified as narrow-based, the minimum margin
required for customer short positions in The NASDAQ
Biotechnology Index options will be the option premium plus
20% of the aggregate index value, less any out-of-the-money
amount to a minimum of premium plus 10% of the aggregate
index value (See Amex Rule 462). Trading hours for The
NASDAQ Biotechnology Index options will be 9:30 a.m. to 4:02
p.m., New York time.

Educational and Promotional Information
A contract specification sheet further describing the Index and
options on the Index is enclosed for your information.
Additional information as well as specially prepared
educational and marketing materials can be obtained by calling
the Amex Derivative Securities Hotline: 800-THE-AMEX. Copies
of this and other AMEX Information Circulars may be accessed
on the AmexTrader.com website.


86 Trinity Place
New York, New York 10006-1872 2/13/02








Symbol: NBI




Description of Nasdaq
Biotechnology Index Options



The Nasdaq Biotechnology Index contains companies primarily engaged in using biomedical
research for the discovery or development of novel treatments or cures for human disease which
also meet other eligibility criteria. The Nasdaq Biotechnology Index is calculated under a modified
capitalization-weighted methodology. On November 1, 1993, the Nasdaq Biotechnology Index
began with a base of 200.00. (Index Components on Reverse).

Exercise Style European – Nasdaq Biotechnology Index options generally may be exercised only on the last
business day before the expiration date.
Trading Unit The minimum trade size is one option contract. The notional value underlying each contract equals
$100 multiplied by the Index value.
Exercise Price Intervals Exercise (strike) prices are set at five-point intervals, bracketing the current value of the Index when
the Index is above 200. If the Index is below 200, the interval will be 2 ½ points.
Strike (Exercise) Prices In-, at- and out-of-the-money strike prices are initially listed. New series generally will be added
when the Nasdaq Biotechnology Index trades through the highest or lowest strike price available.
Option Premium Quotations Stated in decimals. One point equals $100. Minimum tick for series trading below 3.00 is 0.05
($5.00); for all other series, 0.10 ($10.00).
Expiration Cycle Up to three consecutive near-term expiration months, plus up to two additional further-term
expiration months in the March cycle are available at any one time.
Expiration The Saturday following the third Friday.
Settlement of Option Exercise Determined on the last business day prior to expiration, based on the first (opening) reported sale
price for each component stock.

Last Trading Day Trading in Nasdaq Biotechnology options will ordinarily cease on the business day (usually a
Thursday) preceding the day on which the exercise-settlement value is calculated.
Position and Exercise Limits 31,500
Index Settlement Symbol: NBZ
Settlement: Next New York business day following expiration.
Trading Hours 9:30 a.m. to 4:02 p.m., New York time.
Cusip Number 63109R108

Nasdaq Biotechnology
Index
 Options

86 Trinity Place
New York, New York 10006-1872 2/13/02


Index Components


Abgenix, Inc. ABGX ILEX Oncology, Inc. ILXO
Affymetrix, Inc. AFFX ImClone Systems Incorporated

IMCL
Antigenics Inc. AGEN ImmunoGen, Inc. IMGN
Alkermes, Inc. ALKS Immunomedics, Inc. IMMU
Alexion Pharmaceuticals, Inc. ALXN Immunex Corporation IMNX
Amgen Inc. AMGN Incyte Genomics Inc. INCY
Albany Molecular Research, Inc. AMRI Inhale Therapeutic Systems,
Inc.
INHL
Arena Pharmaceuticals, Inc. ARNA Isis Pharmaceuticals, Inc. ISIP
ArQule, Inc. ARQL InterMune, Inc. ITMN
Atrix Laboratories, Inc. ATRX Invitrogen Corporation IVGN
Avigen, Inc. AVGN Luminex Corporation LMNX
Biogen, Inc. BGEN Medicines Company (The) MDCO
Caliper Technologies Corp. CALP MedImmune, Inc. MEDI
Cubist Pharmaceuticals, Inc. CBST Medarex, Inc. MEDX
Cell Genesys, Inc. CEGE Millennium Pharmaceuticals,
Inc.
MLNM
Celgene Corporation CELG Myriad Genetics, Inc. MYGN
Cephalon, Inc. CEPH Neurocrine Biosciences, Inc. NBIX
Chiron Corporation CHIR NeoPharm, Inc. NEOL
CuraGen Corporation CRGN NPS Pharmaceuticals, Inc. NPSP
Corixa Corporation CRXA OSI Pharmaceuticals Inc. OSIP
Cell Therapeutics, Inc. CTIC Pharmacopeia, Inc. PCOP
CV Therapeutics, Inc. CVTX Protein Design Labs, Inc. PDLI
Emisphere Technologies, Inc. EMIS Praecis Pharmaceuticals Inc. PRCS
EntreMed, Inc. ENMD QLT Inc. QLTI
Enzon, Inc. ENZN Regeneron Pharmaceuticals,
Inc.
REGN
Exelixis, Inc. EXEL Scios, Inc. SCIO
Genzyme Corporation GENZ SuperGen, Inc. SUPG
Geron Corporation GERN Transkaryotic Therapies, Inc. TKTX
Gilead Sciences, Inc. GILD Tularik Inc. TLRK
Guilford Pharmaceuticals Inc. GLFD Tanox, Inc. TNOX
Gene Logic Inc. GLGC Trimeris, Inc. TRMS
Genta Incorporated GNTA United Therapeutics
Corporation
UTHR
Human Genome Sciences, Inc. HGSI ViroPharma Incorporated VPHM
ICOS Corporation ICOS Vertex Pharmaceuticals
Incorporated
VRTX
IDEC Pharmaceuticals Corporation

IDPH VaxGen, Inc. VXGN