Binary Options on the Target Federal Funds Rate expiring in September 2008 have been cash settled, in accord with CBOT Rule 22B04., with reference to a Contract Grade Index value of 98.00. The Contract Grade Index value is based upon a target federal funds rate of 2.00 percent, as determined and published by the Federal Open Market Committee yesterday, Tuesday, 16 September 2008. For more detail, please visit the website of the Board of Governors of the Federal Reserve System.

In accord with CBOT Rule 22B01.G., for any Binary Put Option on the Target Federal Funds Rate:

If 98.00 is strictly less than the put option strike price, holders of long positions in said put option shall receive, and holders of short positions shall pay, $1000.

If 98.00 is either equal to or greater than the put option strike price, holders of long positions in said put option shall receive, and holders of short positions shall pay, nothing.

In accord with CBOT Rule 22B01.G., for any Binary Call Option on the Target Federal Funds Rate:

If 98.00 is strictly greater than the call option strike price, holders of long positions in said call option shall receive, and holders of short positions shall pay, $1000.

If 98.00 is either equal to or less than the call option strike price, holders of long positions in said call option shall receive, and holders of short positions shall pay, nothing.

For information regarding the Federal Open Market Committee, please visit the website of the Board of Governors of the Federal Reserve System.


If you have questions or comments regarding this e-mail, please contact:

Daniel Grombacher                   312.435.3787                daniel.grombacher@cmegroup.com 
Jeff Kilinski                                312.648.3817                jeff.kilinski@cmegroup.com
Frederick Sturm                        312.347.5235                frederick.sturm@cmegroup.com
James Boudreault                     312.930.3247                james.boudreault@cmegroup.com