EFTA Document EFTA01393136

A holder who plans to exercise a cash-settled index option that settles based on closing prices can mini- mize this risk by withholding exercise instructions until just before the daily exercise cut-off time fixed by his brokerage firm. However, he may not be able to elimi- nate it entirely. Daily exercise cut-off times for index options may be earlier than those fixed for other types of options and may occur before definitive exercise settlement values have been determined. In the case o