Common use of PURCHASED OPTIONS Clause in Contracts

PURCHASED OPTIONS. The Fund may purchase options. In purchasing a call (put) option, the Fund will seek to benefit from an increase (decline) in the market price of the underlying index or security. Risks may arise in the event of default by the counterparty or unanticipated movements in the market price of the underlying index or security, however, the maximum exposure to loss for any purchased option is limited to the premium initially paid for the option. Realized gains or losses on purchased options are included with net gain (loss) on securities sold in the financial statements.

PURCHASED OPTIONS. The Fund may purchase optionscall and put options on indices or securities. In purchasing a The Fund may purchase call (put) option, the Fund will seek options to benefit from protect against an increase (decline) in the market price of the underlying index or security. Risks The Fund may arise purchase put options on indices or securities to protect against a decline in the event of default by the counterparty or unanticipated movements in the market price value of the underlying index or security, however, . Possible losses from purchased options cannot exceed the maximum exposure to loss for any purchased option is limited to the premium initially paid for the optiontotal amount invested. Realized gains or losses on purchased options are included with net gain (loss) on securities sold in the financial statements.