EFTA01393148

holders of the underlying security becomes avail- able from the issuer of the underlying security. Cov- ered writers of an accelerated option may therefore be required to pay the cash amount in respect of the option before they receive the cash payment on the underlying security. 2. The third and fourth sentences of the par- agraph under "Exercises and Settlements- on page 47 of the options booklet are amended to read: However, unlike most other options, flexibly structured index options that are in the money on the expiration date may be exercised automatically. In the future it may be provided that flexibly struc- tured index options will be exercised automatically only if they are in the money by a specified amount. This supplement supersedes the October 1996 supplement to the options booklet. 97 CONFIDENTIAL - PURSUANT TOEFEESERLYO066682 P. 6(e) CONFIDENTIAL SDNY_GM_00244766 EFTA01393148