Credit Event Binary Options For Dish Network Cboe

CHICAGO, April 25, 2011 -The Chicago Board Options Commutation (CBOE) announced today that on Tuesday, April 26, the Commutation will go on its gyre-out of Credit Event Binary Options (CEBO^®) with the addition of five new options classes based on financial firms: Bank of America Corporation (Ticker: BACD); JPMorgan Chase & Co. (Ticker: JPMD); Citigroup Inc. (Ticker: CITD); The Goldman Sachs Grouping (Ticker: GSSD); and Morgan Stanley (Ticker: MSTD).

CBOE re-launched newly-designed Credit Upshot Binary Options at the beginning of March with ten initial unmarried-name listings (http://www.cboe.com/micro/credit/AvailableCebos.aspx). Since so, there has been demand from market participants for a mechanism to protect against potential downside risk in the event of default past broker dealers.

Credit Effect Binary Options contracts let investors to express an opinion on whether a company will experience a "credit event" (e.g., defalcation). Due to inverse correlations betwixt credit and equity markets, CEBO contracts tin be used as a hedging tool for individual issuers. The contracts also provide the advantages of price transparency available through a regulated commutation, currently unavailable in over-the-counter credit default swaps markets.

A CEBO contract has simply two possible outcomes - a payout of a fixed amount if a credit event occurs or zero if a credit event does not occur.

Contract specifications for CEBOs, which first began trading in 2007, were revised this twelvemonth. I alter simplifies the terms of a payout for CEBO contracts, assuasive CBOE to list CEBO contracts that specify defalcation as the merely trigger for a payout. The size of the CEBO contract payout if a credit result occurs has also been revised. If a bankruptcy occurs prior to expiration of the specific contract, the amount of the payout will exist $one,000 per contract.

For the v new classes that volition be added tomorrow, initial series expirations volition exist December 2011, December 2012 and December 2013.

For contract specifications and other information about CEBOs, run into world wide web.cboe.com/credit.

CBOE, the largest U.Due south. options exchange and creator of listed options, continues to fix the bar for options trading through product innovation, trading applied science and investor educational activity. CBOE offers equity, alphabetize and ETF options, including proprietary products, such as Southward&P 500 options (SPX), the most active U.Due south. index selection, and options on the CBOE Volatility Index (VIX). Other products engineered by CBOE include equity options, security index options, LEAPS options, FLEX options, and benchmark products such as the CBOE South&P 500 BuyWrite Alphabetize (BXM). CBOE's Hybrid Trading Arrangement incorporates electronic and open-outcry trading and is powered by CBOEdirect, a proprietary, state-of-the-art electronic platform that besides supports the C2 Options Exchange (C2), CBOE Futures Substitution (CFE), CBOE Stock Exchange (CBSX) and OneChicago. CBOE is home to the earth-renowned Options Institute and www.cboe.com, named "Best of the Web" for options information and education.

CBOE is regulated past the Securities and Substitution Commission (SEC), with all trades cleared by the AAA-rated Options Immigration Corporation (OCC).

CBOE Media Contacts:
Gail Osten
(312) 786-7123
osten@cboe.com

Gary Compton
(312) 786-7612
comptong@cboe.com

Analyst Contact:
Debbie Koopman
(312) 786-7136
koopman@cboe.com

CBOE®, Chicago Board Options Commutation®, CBSX®, CBOE Stock Exchange®, CEBO®, CFE®, CBOEdirect®, FLEX®, Hybrid®, LEAPS®, CBOE Volatility Alphabetize® and VIX® are registered trademarks, and BuyWrite(SM), BXM(SM), SPX(SM), C2SM, C2 Options ExchangeSM, CBOE Futures Exchange(SM) and The Options Plant(SM) are servicemarks of Chicago Lath Options Commutation, Incorporated (CBOE). Standard & Poor's®, Due south&P® and S&P 500® are registered trademarks of Standard & Poor'southward Financial Services, LLC. and have been licensed for utilize past CBOE. All other trademarks and servicemarks are the property of their respective owners.

Credit Event Binary Options For Dish Network Cboe,

Source: https://ir.cboe.com/news-and-events/2011/04-25-2011/cboe-add-five-new-credit-event-binary-options-cboes-financial-firms-april-26

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