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Strategies & Market Trends : DJX (Dow Jones Ind. Avg. options)

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To: david siple who wrote (13)2/26/1998 12:59:00 AM
From: William Nelson  Read Replies (1) of 33
 
David, I'm interested in hedging some with these options....
December 7600 sounds like exactly what I want.
But, I haven't dealt with options before-would you mind explaining
a couple things to a newbie?

1. What exactly is one djx put? If I have one 7600 put in Dec. and
dow is at 7000, is it worth $600? Or 60? Or something else??
Also I saw several Dec 7600 puts listed for quite different
prices....but I couldn't understand the difference between them.

2. How do you exercise them if it comes to that?

Thanks in advance-

W.N.
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