Rules & Regulations of the State of Tennessee
Title 0780 - Commerce and Insurance
Subtitle 0780-01 - Insurance Division
Chapter 0780-01-32 - Relating to Exchange- Traded Call Options
Section 0780-01-32-.02 - DEFINITIONS

(a) "call option" means an option contract under which the holder of the option has the right, in accordance with the terms of the option, to purchase the number of shares of the underlying stock covered by the option contract.

(b) "exchange" means a national securities exchange registered under the Securities Exchange Act of 1934 which has been authorized to provide a market for option contracts pursuant to Rule 9b-1 under the Securities Exchange Act of 1934, as amended.

(c) "exchange traded" means traded on the floor of an exchange.

(d) "stock" means stock in which a domestic insurance company is authorized to invest its funds pursuant to the provisions of T.C.A.56-3-302, 56-3-303, or 56-23-111.

(e) "escrow receipt" means an escrow receipt issued to The Options Clearing Corporation and a Clearing Member thereof with respect to escrowed stock held on deposit by a bank or other custodian approved by said Corporation for that purpose, all as described in the Registration Statement under the Securities Act of 1933 filed by said Corporation with Securities and Exchange Commission, as amended and supplemented from time to time.

(f) "escrowed stock" means stock with respect to which an escrow receipt has been issued.

(g) "closing purchase transaction" means the purchase, on an exchange but not otherwise, of an exchange-traded call option or options, the effect of which is to reduce or terminate the obligations of a call option seller with respect to an identical option or options.

(h) "closing sale transaction" means the sale, on an exchange but not otherwise, of an exchange-traded call option or options, the effect of which is to liquidate, in whole or in part, the holding of an unexercised and unexpired identical call option or options.