EFTA01393101

and the exercising holder would be entitled to receive, a cash settlement amount of $500 ($85 minus $80 multiplied by 100 = $500). The currency in which the cash settlement amount is payable is called the settlement currency. The settle- ment currency for all cash-settled options with stan- dardized terms that are trading at the date of this booklet is U.S. dollars. It is possible that another cur- rency will be the settlement currency for some options introduced in the future. The manner of determining the exercise settlement value for a particular option series is fixed by the op- tions market on which the series is traded. The exer- cise settlement values for options on a particular underlying interest traded in one options market will not necessarily be determined in the same manner as the exercise settlement values for options or futures on the same underlying interest that may be traded in other markets. Options markets may change the method of deter- mining exercise settlement values for particular op- tions series on specified days or on all days. These changes may be made applicable to series outstand- ing at the time the changes become effective. Alterna- tively, an options market might phase in a change in the method of determining exercise settlement values by opening new series of options identical to outstand- ing series in all respects other than the method for calculating exercise settlement values. Such new se- ries would trade alongside the old series until both series expire, but the two series would not be inter- changeable. In the future, options markets may. sub- ject to regulatory approval, introduce options whose exercise settlement values may not exceed a specified maximum amount. ADJUSTMENT and ADJUSTMENT PANEL—Ad- justments may be made to some of the standardized terms of outstanding options upon the occurrence of certain events. Adjustments that may be made to a particular type of options are discussed in the chapter relating to that type. The determination of whether to adjust outstanding options in response to a particular event, and, if so, what the adjustment should be, is made by a majority vote of an adjustment panel. An adjustment panel for an options series consists of two representatives of each U.S. options market on which the series is traded 10 CONFIDENTIAL - PURSUANT TOfI$5EWiOS098495 P. 6(e) CONFIDENTIAL SDNY_GM_00244679 EFTA01393101