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Current Markets     Computer Industry Returns Market     Liquidation History

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
August 2004 IBM
July 2004 AAPL
June 2004 AAPL
May 2004 MSFT
April 2004 AAPL
March 2004 AAPL
February 2004 IBM
January 2004 AAPL
December 2003 MSFT
November 2003 SP500
October 2003 AAPL
September 2003 MSFT
August 2003 S&P500
July 2003 AAPL
June 2003 S&P500
May 2003 AAPL
April 2003 SP500
March 2003 MSFT
February 2003 AAPL
January 2003 IBM
December 2002 IBM
November 2002 AAPL
October 2002 IBM
September 2002 MSFT
August 2002 IBM
July 2002 IBM
June 2002 MSFT
May 2002 AAPL
April 2002 AAPL
March 2002 SP500
February 2002 AAPL
January 2002 AAPL
December 2001 AAPL
November 2001 MSFT
October 2001 MSFT
September 2001 AAPL
August 2001 IBM
July 2001 MSFT
June 2001 MSFT
May 2001 SP500
April 2001 AAPL
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


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