EFTA01393151

APRIL 2007 SUPPLEMENT The February 1994 edition of the booklet entitled Characteristics and Risks of Standardized Options (the "booklet") is amended as provided below. The changes pertain to non-rate modified cash-settled foreign cur- rency options aid rate-modified cash-settled foreign cur- rency options. This supplement supersedes and replaces the January 2007 supplement. On page 38, the second paragraph under the head- ing "Special Features of Dollar-Denominated Foreign Cur- rency Options" is deleted and replaced with the following: NON-RATE-MODIFIED CASH-SETTLED FOREIGN CURRENCY OPTIONS Exercise prices for currently available dollar-denom- inated options on foreign currencies (other than rate-modified currency options, as described below) are stated In units of U.S. currency (e.g.. cents or hundredths of a cent) per unit of foreign currency. In order to deter- mine the total exercise price per contract. it is necessary to know the unit of U.S. currency used for options on the particular foreign currency, and to multiply the stated exercise price by the unit of trading for such options. For example, at the date of this booklet. dollar-denominated British pound options are expressed in U.S. cents per unit, and dollar-denominated Japanese yen options are expressed in hundredths of U.S. cents per unit. On page 38, the following is inserted immediately following the second "EXAMPLE" at the end of the page: Readers should note, however, that certain exchanges may express exercise prices in other uncon- ventional ways. For example, an exercise price stated as $100.50 may in reality mean $1.0050. Readers need to be sure they fully understand the various conventions used by the exchanges on which they trade in quoting exercise prices. On page 39, the second paragraph is deleted and replaced with the following: Premiums for currently available dollar-denominated options on foreign currencies (other than rate-mocifi ed cur- rency options. as described below) are compressed in units of U.S. currency per unit of foreign currency. In order to calotiate the cost of the option, it is necessary to know the unit of U.S. currency used for options on the particular 100 CONFIDENTIAL - PURSUANT TOMIESMCIMS6585 P. 6(e) CONFIDENTIAL SDNY_GM_00244769 EFTA01393151