certain cash-settled options provide for automatic exercise in specified circumstances. Other options having automatic exercise provisions may be introduced for trading in the future. The rules of the options markets generally limit the total number of puts or calls on the same underlying interest that a single investor or group of investors acting in concert may exercise during a specified time period. Information concerning the exercise limits for particular options is available from the options market on which those options are traded or from brokerage firms. The right to exercise an option may be restricted in certain circumstances. This is discussed under "Risks of Option Holders" in Chapter X. When an option has been exercised. OCC will assign the exercise in accordance with its rules to a Clearing Member whose account with OCC reflects the writing of an option of the same series. The Clearing Member may, in turn, assign this exercise to one of its customers who i8 a writer in accordance with the Clearing Member's procedures, and the assigned writer will then be obligated to perform the obligations of the option—that is, to sell (in the case of a physical delivery call) or buy (in the case of a physical delivery put) the underlying interest at the exercise price, or, in the case of a cash-settled option, to pay the cash settlement amount. The assignment process is discussed further in Chapter VIII. CASH SETTLEMENT AMOUNT, SETTLEMENT CURRENCY and EXERCISE SETTLEMENT VALUE-The cash settlement amount is the amount of cash that the holder of a cash-settled option is entitled to receive upon exercise. It is the amount by which the exercise settlement value of the underlying interest of a cash-settled call exceeds the exercise price, or the amount by which the exercise price of a cash-settled put exceeds the exercise settlement value of the underlying interest, multiplied by the multiplier for the option. EXAMPLE: Assume that a holder of a cash-settled call on the XYZ Index that has an exercise price of 80 exercises it when the exercise settlement value of the index is 85. If the multiplier for XYZ index options is 100. the assigned writer would be obligated to pay, 9 CONFIDENTIAL - PURSUANT TOCRIESCIRPON0ST770 P. 6(e) CONFIDENTIAL SDNY_GM_00183954 EFTA01353408