Mini-Sized Dow Option

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Mini-Sized Dow Option

A highly leveraged index option on a futures contract in which the underlying index is the Dow Jones Industrial Average. The option has a multiplier of five, meaning that the option allows one to buy (for a call) or sell (for a put) up to five times the value of the DJIA. This allows one to profit from the option for a lower price than one would otherwise be able to do. As with all index options, a mini-sized Dow option is settled in cash.