IEM Liquidation History- Computer Industry Returns Market Winner-Takes-All Contracts
CONTRACTS
The computer industry returns market liquidates on the first Monday following the third Friday of any given month. Contract liquidation values are determined by rates of return measured from the third Friday of one month to the third Friday of the next month.
LIQUIDATION VALUES
The liquidation values for these contracts are determined solely by the dividend adjusted rates of return of Apple Computer, Inc. Common Stock (AAPL, listed on NASDAQ), International Business Machines Corporation Common Stock (IBM, listed on the NYSE) and Microsoft Corporation Common Stock (MSFT, listed on NASDAQ); and the capital gains rate of return on the Standard and Poor's 500 Index. The computer industry stock which holds the highest rate of return as specified below will pay off $1.00 per contract. All other contracts will pay off zero .
CLOSING PRICE SOURCES
The Midwest Edition of the Wall Street Journal will be the official source of closing prices. If one of the companies is de-listed, the last available closing price will be used as the closing price for determining liquidation values. If one of the companies undergoes a stock split during the trading period, the closing price of its stock used to calculate payoffs will be adjusted to take account of this split. Specifically if each existing share is split into M shares, then the closing price used to calculate payoffs will be multiplied by M since this represents the value of one pre-split share in the company. Stock dividends will be treated in the same manner.
COMPUTING RETURNS
For AAPLm, IBMm and MSFTm, we will compute the dividend adjusted rate of return based on closing stock prices of the underlying listed firm between the third Friday in the liquidation month and the third Friday in the previous month. For these purposes, we will use closing prices as reported in the Midwest edition of the Wall Street Journal.The Dividend Adjusted Rate of Return is calculated as follows: First, we compute the raw return on the underlying stock (the closing price on the third Friday of the liquidation month, minus the closing price from the third Friday of the previous month, plus any dividends on ex-dividend dates). Then, we divide the raw return by the closing stock price from the previous month to arrive at the dividend adjusted rate of return.
For the SP500 contract, we compute the capital gains rate of return by subtracting the closing index value on the third Friday of the previous month from the closing index value on the third Friday of the liquidation month and then divide by the previous month's closing index value.
LIQUIDATION HISTORY
- Date of Liquidation
- Computer Industry Stock With Highest Dividend Adjusted Monthly Return
March 2001 AAPL February 2001 IBM January 2001 AAPL December 2000 SP500 November 2000 IBM October 2000 MSFT September 2000 AAPL August 2000 IBM July 2000 AAPL June 2000 MSFT May 2000 IBM April 2000 SP500 March 2000 AAPL February 2000 AAPL January 2000 AAPL December 1999 MSFT November 1999 AAPL October 1999 AAPL September 1999 AAPL August 1999 AAPL July 1999 MSFT June 1999 MSFT May 1999 IBM April 1999 AAPL March 1999 MSFT February 1999 SP500 January 1999 AAPL December 1998 MSFT November 1998 IBM October 1998 IBM September 1998 IBM August 1998 AAPL July 1998 AAPL June 1998 MSFT May 1998 IBM April 1998 MSFT March 1998 AAPL February 1998 MSFT January 1998 AAPL December 1997 SP500 November 1997 IBM October 1997 SP500 September 1997 SP500 August 1997 AAPL July 1997 IBM June 1997 MSFT May 1997 IBM April 1997 MSFT March 1997 AAPL February 1997 MSFT January 1997 IBM December 1996 MSFT November 1996 IBM October 1996 AAPL September 1996 IBM August 1996 IBM July 1996 MSFT June 1996 MSFT May 1996 AAPL April 1996 MSFT March 1996 MSFT February 1996 IBM January 1996 IBM December 1995 SP500 November 1995 AAPL October 1995 IBM September 1995 SP500 August 1995 IBM July 1995 IBM June 1995 SP500 May 1995 MSFT April 1995 AAPL Error processing SSI file
