CBOE launches basket credit event options

The Chicago Board Options Exchange (CBOE) has launched three credit default basket options, despite a slow start for its other credit products. The CBOE listed the three credit event binary options products on July 31. They will be based on baskets of reference entities from the automobile and construction sectors, and on a basket of high-yield securities. Each will have a notional face value of $100,000. The basket constituents and weighting had not been revealed by the time Risk went to press

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