Thursday, June 7, 2007

CBOE says to launch credit default options

(Reuters) - The first round of credit default options will be on auto
industry companies General Motors Corp. , Ford Motor Co.
and Lear Corp. , and homebuilders Hovnanian
Enterprises and Standard Pacific Corp.




CBOE's contracts are cash-settled binary call options that
pay $100,000 when CBOE confirms that a credit event, such as a
default on specified payment obligations, has occurred.


Read more at Reuters.com Bonds News

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