Subject: Derivatives - LEAPs

Last-Revised: 30 Dec 1996
Contributed-By: Chris Lott (contact me)

A Long-term Equity AnticiPation Security, or "LEAP", is essentially an option with a much longer term than traditional stock or index options. Like options, a stock-related LEAP may be a call or a put, meaning that the owner has the right to purchase or sell shares of the stock at a given price on or before some set, future date. Unlike options, the given date may be up to 2.5 years away. LEAP symbols are three alphabetic characters; those expiring in 1998 begin with W, 1999 with V.

LEAP is a registered trademark of the Chicago Board Options Exchange. Visit their web site for more information: http://www.cboe.com/