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Foreign Stock Index Options, Warrants, and Futures
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These exchange-traded contracts, most common in the United States, provide exposure to CFTC/SEC-approved foreign stock indexes (typically the Nikkei or Japan index, the FTSE-100, the DAX, or the CAC-40). The index level is translated into dollars for pricing and settlement purposes and, in most warrants and options, the exchange rate is fixed at issuance for the life of the contract. See also Covered Warrant, Guaranteed Exchange Rate Warrant, Guaranteed Warrants.
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