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EFTA01353495

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The following paragraphs are inserted following the cany-over paragraph at the top of page 10 of the Booklet: In the case of a binary option, the cash settlement amount is determined by the relevant listing options mar- ket and, whether or not established through use of a multiplier, is fixed and does not vary (except in the case of certain adjustments described below) regardless of the amount by which the exercise settlement value exceeds (in the case of a binary_call option) or is less than (in the case of a binary put option) the exercise price. EXAMPLE: An investor holds a binary call option on XYZ security that has an exercise price of $80 and a fixed cash settlement amount of $100. If the exercise settlement value of XYZ is $81 at expiration, the investor will receive $100. If the exercise settlement value is $90, the investor will still receive $100. It on the other hand, the exercise settlement value of XYZ at expiration is below $80. the investor will receive nothing, and the option will expire worthless. It is very important to note that the conditions under which a binary option returns a cash settlement amount may vary depending upon the rules of the listing options market. Specifically, the listing options market may list binary options that return a cash settlement amount if: (1) the exercise settlement value of the underlying is above the exercise price (a binary call); or (2) the exer- cise settlement value of the underlying is below the exer- cise price (a binary put). In addition, certain binary call options return a cash settlement amount if the exercise settlement value of the underlying is exactly equal to the exercise price. EXAMPLE: Assume XYZ stock is the underlying security for a binary stock option with an exercise price of $80, and the exercise settlement value of XYZ at expira- tion is exactly $80. If the listing options market specified that the option would return a cash settlement amount if the exercise

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