EFTA Document EFTA01353449

by sections discussing the special risks associated with options on the particular types of underlying interests. RISKS OF OPTION HOLDERS 1. An option holder runs the risk of losing the entire amount paid for the option in a relatively short period of time. This risk reflects the nature of an option as a wasting asset which becomes worthless when it ex- pires. An option holder who neither sells his option in the secondary market nor exercises it prior to its expi- ration will necessarily