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Trading began Monday, May 20, 2002 for CBOE's newest index-based addition: Options on DIAMONDS (ticker symbol DIA). DIAMONDS are shares

in an exchange-traded fund designed to track the performance of the Dow Jones Industrial Average (DJIA

). Options on DIAMONDS are offered exclusively by CBOE in addition to Options on the Dow (DJX). Both DIA and DJX options can provide your customers with exposure to the DJIA in one transaction that can also offer the benefit of limited risk, if purchasing a DIA option.

One key feature differentiating DIA options from DJX options is the type of settlement. Customers looking for a physically-settled Dow-based option can now consider DIA options, which will represent 100 shares of the underlying DIAMONDS Trust, Series I, and will be American-style exercise. Customers who seek a cash-settled, European-style index option may consider DJX options.

Initial response appears favorable, with 16,719 contracts traded in the first two trading days and David Moran, president of Dow Jones Indexes, commenting, "CBOE remains the number one marketplace in the world for listed options and its members have built an excellent trading environment for options based on the Dow Jones Industrial Average. Their unique, sophisticated hybrid trading floor continues to boost volumes on The Dow contract. With the Dow Jones Industrial Average and the Dow Jones Euro Stoxx 50, Dow Jones has the most recognized blue chip indexes on two continents. We are confident that investor demand for products linked to these leading indexes will continue to grow."

For more information on CBOE's DIA options, click here.

	Options on DIAMONDS (DIA)	Options on the Dow(DJX)
Ticker Symbol	DIA	DJX
Underlying	Generally, 100 shares of DIAMONDS, an exchange-traded fund designed to track the performance of the Dow Jones Industrial Average	Options are based on 1/100th of the DJIASM level
Premium Quotation	Stated in decimals. One full point equals $100. Minimum tick for options trading below 3.00 is 0.05 ($5.00) and for all other series, 0.10 ($10.00).	Stated in decimals. One full point equals $100. Minimum tick for options trading below 3.00 is 0.05 ($5.00) and for all other series, 0.10 ($10.00).
Strike Prices	In-, at- and out-of-the-money strike prices are initially listed. New series generally will be added when DIA shares trade through the highest or lowest strike price available.	In-, at- and out-of-the-money strike prices are initially listed. New series generally will be added when DJX shares trade through the highest or lowest strike price available.
Strike Price Intervals	Strike prices are set at a minimum of 1-point increments.	Strike prices are set at a minimum of 1-point increments.
Expiration Date	Saturday immediately following the third Friday of the expiration month.	Saturday immediately following the third Friday of the expiration month.
Expiration Months	Three near-term months and three months from the March quarterly cycle (March, June, September and December).	Generally, up to three near-term months plus up to three months from the March quarterly cycle (March, June, September and December).
Last Trading Day	Trading in DIA options will ordinarily cease at the close on the business day (usually a Friday) preceding the expiration date.	Trading in DJX options will ordinarily cease on the business day (usually a Thursday) preceding the day on which the exercise settlement value is calculated.
Settlement Value		Calculated based on the opening prices of the component securities on the business day prior to expiration, usually a Friday. The exercise-settlement amount is equal to the difference between exercise-settlement value and the exercise price of the option, multiplied by $100.
Exercise Style	American -- DIA options generally may be exercised on any business day before the expiration date.	European -- DJX options may be exercised only on the last business day preceding expiration.
Settlement	Physical delivery. Exercise notices properly tendered on any business day will result in delivery of DIA shares on the third business day following exercise.	Cash-settled.
Trading Hours	8:30 a.m. to 3:15 p.m. Central Time.	7:00 a.m. to 8:15 a.m. Central time (on CBOEdirect). 8:30 a.m. to 3:15 p.m. Central Time.

Options are not suitable for every investor. For more information, consult your investment advisor. Prior to buying and selling options, a person must receive a copy of Characteristics and Risks of Standardized Options which is available from your broker or from The Options Clearing Corporation (OCC) by calling 1-888-OPTIONS, or by writing to OCC at One North Wacker Dr. Suite 500, Chicago, IL 60606. "The Dow Industrials", "DIAMONDS" and the "Dow Jones Industrial Average" are service marks of Dow Jones & Company, Inc. and have been licensed for certain purposes by the Chicago Board Options Exchange, Incorporated. ("CBOE"). CBOE's options based on the Dow Jones Industrial Average and DIAMONDS are not sponsored, endorsed, sold or promoted by Dow Jones, and Dow Jones makes no representation regarding the advisability of investing in such products. CBOE and Chicago Board Options Exchange are registered trademarks of the Chicago Board Options Exchange, Incorporated. DIAMONDS represent ownership in the DIAMONDS, Trust Series 1, a unit investment trust established to accumulate and hold a portfolio of the equity securities that comprise the Dow Jones Industrial Average. DIAMONDS seek investment results that, before expenses, generally correspond to the price and yield performance of the DJIA. There is no assurance that the price and yield performance of the DJIA can be fully matched. Exchange Traded Funds are subject to risks similar to those of stocks. Investment returns will fluctuate and are subject to market volatility, so that an investorÍs shares, when redeemed or sold, may be worth more or less than their original cost. Investments in foreign investments may incur greater risks than domestic investments. 2002 Chicago Board Options Exchange, Incorporated.

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