Chapter 5: Options Trading

Question 1

Long position

Answer 1

Long position means “right to”

-Long call = right to buy at strike price
-Long put = right to sell at strike price

Question 2

Short position

Answer 2

Short position means “obligation to”

-Short call = obligation to sell at the strike price
-Short put = obligation to buy at the strike price

Question 3

In the money/At the money/Out of the money

Answer 3

Refers to market value compared to strike price, REGARDLESS OF PURCHASE PREMIUM.

Question 4

Long-term Equity Anticipation Securities (LEAPS)

Answer 4

Stock or index options with expiration dates out to 39 months. Only long LEAPS can result in long-term capital gain or losses. These occur when LEAPS are held for a period greater than 12 months. Remember that conventional options have a 9-month life.

Question 5

Options premium

Answer 5

premium = intrinsic value + time value

Question 6

Time value

Answer 6

The time value of an option is determined by how much time there is until the expiration date. The more time there is until expiration, the more time value in the option; the less time until expiration, the less time value. The time value of an option “erodes” the closer it is to the expiration date. Options are wasting assets.

The portion of the option’s premium that is based on the amount of time remaining until the expiration date of the option contract.

time value = premium – intrinsic value

Question 7

Intrinsic value

Answer 7

-Must be in the money to have intrinsic value. Note that premium is not a factor. Applies to strike price relative to market price

• intrinsic value of a CALL option = price of underlying security - strike price
• intrinsic value of a PUT option = strike price - price of underlying security

Question 8

Time value

Answer 8

The portion of the option’s premium that is based on the amount of time remaining until the expiration date of the option contract.

time value = premium – intrinsic value

Question 9

Straddles

Answer 9

A straddle is a call and a put on the same underlying security with the same strike price and the same expiration date.

The investor buying or writing a straddle is speculating on the volatility of the underlying security. The buyer of the straddle expects the underlying security to make a substantial move, but is not sure if the move will be up or down, so the investor buys a put and a call with the same strike price and expiration date. If the underlying security goes high enough, the investor makes money on the long call; if it goes low enough, the investor makes money on the long put.

The seller/writer of a straddle expects little or no volatility in the movement of the underlying security. If correct, the straddle writer makes money because the option premiums will gradually go down in value because of the decline in volatility and the erosion of the time value in the put and call premiums.

At expiration, if the price of the underlying security is at the straddle strike price, the put and the call will both expire worthless and straddle writer will make maximum profit, which is the premium received for writing the straddle.

Question 10

Long straddle

Answer 10

A long straddle is a combination of buying a call and buying a put, both with the same strike price and expiration. Together, they produce a position that should profit if the stock makes a big move either up or down.

• Maximum gain is unlimited (because a straddle holder is long calls).
• Maximum loss is the premium paid.

There are two breakeven points for a straddle: one for the upside and one for the downside.

The breakeven point for the upside is the premium of the call and the put added to the call strike price.

For the downside, the breakeven point is the premium of the call and the put subtracted from the put strike price. A straddle holder makes a profit if the underlying security trades above or below the breakeven points.

IMPORTANT: A straddle holder makes a profit if the underlying security trades in between the breakeven points.

Question 11

Short straddle

Answer 11

Maximum gain is the premium received.
Maximum loss is unlimited (because straddle writer is short calls).

There are two breakeven points for a straddle: one for the upside and one for the downside.

The breakeven point for the upside is the premium of the call and the put added to the call strike price. For the downside, the breakeven point is the premium of the call and the put subtracted from the put strike price.

IMPORTANT: A straddle holder makes a profit if the underlying security trades in between the breakeven points.

Question 12

Hedges

Answer 12

Hedging is an investment strategy that investors use to protect their investments against loss and to control risk. It involves reducing the risk associated with an investment by using a second investment to offset a potential loss on the first. For example, equity options can be used to hedge stock positions.

One way to think about hedging a stock position is to determine the risk. For example, if an investor buys 100 shares of a stock, the risk is that the stock price will decline and the investor will sell at a loss. Owning or being long a stock is a bullish position. To protect a bullish stock position, an investor would establish a bearish position in options.

Question 13

Covered Writes

Answer 13

A covered write provides a stock investor with a partial hedge and income. To establish a covered write, an investor writes options share for share against a stock position and collects the premium.

An investor who is long stock establishes a covered write by writing calls on a stock position. The calls are “covered” because the investor owns the underlying security. Writing calls provides income to the investor and creates a partial downside hedge but limits the investor’s potential profit on the stock.

Question 14

Selling/writing an option

Answer 14

IMPORTANT: The maximum gain when selling options is the premium received.

Question 15

Vertical Spread

Answer 15

• A vertical spread is an options strategy that involves buying (selling) a call (put) and simultaneously selling (buying) another call (put) at a different strike price, but with the same expiration
• Bull vertical spreads increase in value when the underlying asset rises, while bear vertical spreads profit from a decline in price.
• Vertical spreads limit both risk and the potential for return.

Question 16

Horizontal spread

Answer 16

• Horizontal spread is a simultaneous long and short option position on the same underlying asset and strike price but with a different expiration.
• Horizontal (calendar) spreads allow traders to construct a trade that minimizes the effects of time.

Question 17

Options - debit spread

Answer 17

• A debit spread, or a net debit spread, is an options strategy involving the simultaneous buying and selling of options of the same class with different strike prices requiring a net outflow of cash, or a “debit,” for the investor.
• The result is a net debit to the trading account.
• Here, the sum of all options sold is lower than the sum of all options purchased, therefore the trader must put up money to begin the trade.
• The higher the debit spread, the greater the initial cash outflow the trader incurs on the transaction.

Important: Price pertains to premium.

Question 18

Options - credit spread

Answer 18

• Is a type of options strategy where the trader buys and sells options of the same type and expiration but with different strike prices.
• The premiums received are greater than the premiums paid resulting in a net credit for the trader.
• The net credit is the maximum profit a trader can make.

Important: Price pertains to premium.

Question 19

Diagonal Spread

Answer 19

• A diagonal spread is a spread that has different exercise prices and different expiration dates. It is made up of a long and a short option – both calls or both puts.
• A diagonal spread is an options strategy that involves buying (selling) a call (put) option at one strike price and one expiration and selling (buying) a second call (put) at a different strike price and expiration.
• Diagonal spreads allow traders to construct a trade that minimizes the effects of time, while also taking a bullish or bearish position.
• It is called a “diagonal” spread because it combines features of a horizontal (calendar) spread and a vertical spread.

Question 20

Equity mini-options

Answer 20

Equity mini-options are nearly identical to conventional equity options except that mini-options represent 10 shares of the underlying security whereas traditional options represent 100 shares. Because the contract is for only 10 shares, both the contract multiplier and premium multiplier for mini-options is 10. For example, a mini-option with a premium of $5 can be purchased for $50 ($5 premium × 10 shares = $50).

The lower costs of mini-options provide a way for investors to participate in the movements of high-priced stocks while buying even just a few shares of a single traditional option can be very expensive.

Question 21

LEAPs

Answer 21

• Long-term Equity Anticipation Securities (LEAPS) are stock or index options with expiration dates out to 39 months.
• Only long LEAPS can result in long-term capital gain or losses. These occur when LEAPS are held for a period greater than 12 months.
• Remember that conventional options have a 9-month life. Consequently, conventional options always result in short-term capital gains or losses if the option expires or the position in closed.
• Capital gains and losses resulting from a 12-month or shorter holding period are classified as short term.

Question 22

Premiums, time value and intrinsic value

Answer 22

• Options premiums (prices) are made up of time value and intrinsic value. In equation form, this relationship looks like this:

premium = intrinsic value + time value

• The time value of an option is determined by how much time there is until the expiration date. The more time there is until expiration, the more time value in the option; the less time until expiration, the less time value. The time value of an option “erodes” the closer it is to the expiration date. Options are wasting assets.
• A call has intrinsic value when the price of the underlying security is higher than the strike price of the call. For example, if LMN stock is trading at $28 a share, then the LMN May 25 call has intrinsic value because the price of LMN stock is higher than the call strike price by $3 per share.
• A put has intrinsic value when the price of the underlying security is lower than the strike price of the put. If LMN stock is trading at $28 the LMN May 30 put would have intrinsic value of $2 because the price of LMN stock is lower than the put strike price.
• When an option is “in the money,” it has intrinsic value. Only in the money options are exercised. It may help to remember that INtrinsic is IN.
• A call is in the money when the price of the underlying security is higher than the strike price of the call. (Think “Call up.”)

Question 23

Calculating intrinsic value

Answer 23

• A call is in the money when the price of the underlying security is higher than the strike price of the call. (Think “Call up.”)

intrinsic value of a CALL option = price of underlying security - strike price

• A put is in the money when the price of the underlying security is lower than the strike price of the put. (Think “Put down.”)

intrinsic value of a PUT option = strike price - price of underlying security

Question 24

CBOE (Chicago Board Options Exchange)

Answer 24

The CBOE (Chicago Board Options Exchange) is the largest options exchange.

• Equity options trade from 9:30 until 4 Eastern time;
• Options trades settle the next business day;
• Premiums must be paid in full; they cannot be purchased on margin;
• The volume of positions in options on any given day will adjust the options open interest. Open interest is the number of options contracts open on any given security.

Question 25

Opening and closing transactions

Answer 25

When an investor enters an order to buy or sell an option contract, the investor must indicate if the order is an opening transaction or a closing transaction. An opening transaction establishes a new options position or adds to an existing position. A closing transaction closes out or reduces an existing options position.

Opening transactions can be buy or sell orders. An opening purchase order establishes a long position in the options (puts or calls). An opening sell order establishes a short position in the options. When you write puts and calls, your order is an opening sell.

Closing transactions also can be buy orders or sell orders. When the long position is sold, the order is a closing sell (it closes out the long position). When an option writer covers his position by buying back his short option position, the order is a closing purchase.

Question 26

Options expiration

Answer 26

Equity Options expire at 11:59 p.m. ET on the third Friday of the expiration month. Expiring options stop trading at 4 p.m. ET, on the third Friday of the expiration month, unless it is a holiday. On holidays, they will stop trading on the third Thursday of the expiration month. Even though options don’t expire until Friday at 11:59, the OCC must receive notice of exercise from broker/dealers on Friday no later than 5:30 p.m. ET. Broker/dealers have their own deadlines to receive notice of exercise from their customers that are earlier than the OCC deadline. To help you remember when options no longer can be traded vs. when you can no longer exercise, think of it this way: You cannot close position after the market closes. The market closes at 4 p.m. ET, so you could no longer close your option position after 4 p.m. ET on expiration Friday. However, you have until 5:30 p.m. ET to exercise. So think of it this way: You have an hour and a half after work to do your exercising.

To protect investors, the Options Clearing Corporation will automatically exercise expiring options that are in the money by $0.01 or more. If investors don’t want their in-the-money options to be exercised, they must notify their brokerage firm, who must notify the OCC by the exercise deadline.

Question 27

Requirements to open an options account

Answer 27

To open an options account, the following must occur in the order stated:

1. New account form completed.
2. Customer loan agreement and margin agreement must be fully executed unless the customer is only buying options.
3. Options disclosure document must be provided prior to the registered option principal approving the account.

• The customer must return the signed options account agreement to the brokerage firm within 15 days of the new account approval.
• However, if the customer is late signing the option agreement and sending it back, only closing transactions may occur.

Question 28

Options and customer communications

Answer 28

When communicating with customers or potential customers about options, specific standards must be applied. For example, option advertising must be approved by a registered options principal (ROP) prior to first use. Also, it must be filed with the SRO at least 10 days prior to use. Advertising may not address any specific option or performance.

Option sales literature must also be approved in advance by a ROP. Sales literature is much more specific than advertising. One example is an option worksheet where the registered representative shows the customer possible outcomes from covered call writing. The original option worksheet must be approved by the firm’s home office ROP.

• IMPORTANT: Whenever sending out option sales literature, the registered representative or the broker/dealer is also required to send a copy of the OCC disclosure document. This document discloses the risks involved in trading options.

Question 29

Taxes and options – Long calls and Long puts

Answer 29

Options are capital assets and subject to capital gains tax treatment.

Long Calls and Long Puts:
- If puts or calls are purchased and held for more than a year, the profit or loss on the sale is treated as a long-term capital gain or loss.
- If held one year or less, the gain or loss is treated as a short-term capital gain or loss.
- Long puts and calls that expire are treated as a sale for tax purposes. The expiration date is the sale date.

• The investor will have a long-term capital loss or a short-term capital loss depending on how long the positions are held.
• Exercising options is not a taxable event.
• When a call holder exercises and purchases the underlying security, a new tax holding period begins the day after he exercises the call. The cost basis for the stock is the strike price plus the premium paid for the call.
• When a put holder exercises and sells the underlying security, the sales proceeds equal the strike price less the premium paid for the put. This is compared to the investor’s stock purchase price to determine capital gain or loss.

Question 30

Taxes and options – Short Calls and Short Puts

Answer 30

Income from writing puts and calls is treated as a short-term capital gain regardless of how long the investor held the position. It is included in income when the option position is closed, either from a closing purchase or expiration.

If a call writer is exercised, the sale proceeds equal the strike price plus the premium received. The tax treatment of the profit or loss depends on how long the investor held the underlying security.

If a put writer is exercised, the cost basis is established for the underlying security purchased. This cost basis equals the strike price less the premium received. The tax holding period for this new stock position begins the day after the purchase.

Question 31

LEAPS and taxes

Answer 31

LEAPS: Profits and losses from long LEAPS (held for more than 1 year) are treated as long-term capital gains and losses. Income from writing LEAPS is treated as a short-term capital gain regardless of the holding period.

Question 32

Non-equity options

Answer 32

Nonequity options are contracts on assets other than equities. Though the underlying asset is different, nonequity options behave just like equity options. In other words, breakeven, gain, and loss are calculated the same way. Long calls and short puts are bullish. Short calls and long puts are bearish. The holder is in control and the writer is obligated to perform if instructed. This section examines three kinds of non-equity options that are tested on the Series 7.

1. Index options
2. Debt-to-yield options
3. Foreign currency options

Question 33

Index options

Answer 33

Listed put and call options are traded on broad-based indices like the S&P 500 and the S&P 100 (OEX) as well as narrow-based indices that track specific market sectors such as the XOI (Oil Index). Index options trade on the AMEX, CBOE, ISE, NYSE Arca and the PHLX.

Index options allow investors to capitalize on price movements of the stock market as a whole or stock market sectors, and can be used to hedge a portfolio of stocks.

Contract Size:
Usually, index options have a contract multiplier of 100. The option strike price is multiplied by 100 to calculate the dollar value of the underlying index. To get the total premium for an index option, multiply the quoted premium by the contract multiplier.

Example:
OEX Oct 550 call @ $9.10

550 × 100 = 55,000 index value

$9.10 × 100 = $910 total premium

Question 34

Index options - exercise and settlement

Answer 34

Exercise: When index options are exercised, they settle in cash not securities. This is called cash settlement.

Exercise Settlement Amount: The index option holder receives cash equal to the intrinsic value of the option. The index option writer is required to deliver cash equal to the intrinsic value of the option, the following business day.

Exercise Settlement Value: The exercise settlement value is based on the closing value or the opening value (depending on the index) of the underlying index on the day the option is exercised.

AM settlement: Exercise settlement values are based on the value of the underlying index at the market open.

PM settlement: Exercise settlement values are based on the value of the underlying index at the market close.

Example:
An investor exercises an OEX Oct 530 call. The closing value of the OEX (S & P 100) on the day of exercise is 537. The investor will receive $700 (537-530 = 7 × 100 = $700). The call writer must deliver $700 on the next business day.

In reality, investors don’t usually exercise index options. Why bother exercising an option that settles in cash when you can just sell it for cash in options market? Plus, when you sell options, the premium will include the remaining time value.

Question 35

Index options - expiration

Answer 35

Expiration: American style index options expire on the third Friday of the month. The last trading day for American style index options is expiration day. If Friday is an exchange holiday, then expiration and the last trading is the third Thursday of the month. For European style index options, expiration is the business day before the day that the exercise settlement is calculated (usually a Thursday).

Trading hours for broad-based indices options are 9:30 a.m.-4:15 p.m. ET. Industry specific indices trade from 9:30 a.m.-4 p.m. ET. Index options trades settle on the next business day.

Four times per year, in March, June, September, and December, three types of options expire on the same day. These options are stock options, index options, and options on futures. This occurrence is known as triple witching. Triple witching days are generally associated with volatility.

Question 36

Index options - Position limits

Answer 36

Currently, there are no position limits on broad-based index options; however, this is subject to change. There are reporting requirements for exchange members, regarding member firms and their customers who hold large positions in broad-based index options.

Question 37

Index options - strategies

Answer 37

Index option strategies are same as for equity options: long calls, short calls, long puts, short puts, spreads, straddles, hedges.

The exception is covered writes. You can’t do a covered write on an index (think about it - there’s no underlying stock).

The profit and loss, maximum loss, gain and breakeven points are calculated in the same way as equity options.

Question 38

Index options - portfolio insurance

Answer 38

Portfolio Insurance: Investors and portfolio managers buy index puts to insure stock portfolios against market downturns and to protect unrealized gains. First, the investor has to determine which index most closely correlates to the portfolio of stocks that is to be protected. To insure a portfolio of small- and mid-cap stocks, an investor might buy index puts on the Russell 2000, or to insure a diversified portfolio of large cap stocks, S & P 500 index puts might be chosen. Next, the number of puts to purchase must be determined.

For example: To calculate how many puts to insure a portfolio, divide the dollar value of the portfolio by the index value × contract multiplier, or portfolio value/ (index value × contract multiplier).

An investor owns a portfolio of large cap stocks worth $735,000 with a substantial unrealized gain. The investor wants to “insure” the portfolio and decides to purchase OEX Jan 475 puts. The current index value is 490. How many puts must be purchased?

735,000/ (490 × 100) = 15 puts

Beta: Beta is a measurement of how closely the volatility of a stock, or in this case a portfolio of stocks, follows the overall market. A stock or portfolio with a beta of 1 has the same volatility as the overall stock market. If it has a beta of 0.75, it is 25% less volatile. If it has a beta of 1.25, it is 25% more volatile than the market.

This is important to portfolio managers because if the beta of their portfolio is higher than the market, they need to purchase more puts to hedge their portfolio. To hedge a portfolio with a beta of 1.10, the manager needs to purchase 10% more puts. A portfolio of 1.20 needs 20% more puts, etc.

Example:

Portfolio value: $1,000,000

Portfolio beta: 1.20

Current S&P 100 index value (OEX) index value: 480

1,000,000/ (480 × 100) = 20.83 puts

20.83(puts) × 1.20 (beta) = 24.996

To hedge this portfolio, you need to buy 25 puts.

Question 39

Debt to yield options

Answer 39

Options trade on U.S. Government debt securities. There are options on T-Bills, T-Notes and T-Bonds. There are two kinds of options: bond options and interest rate options, also known as yield-based options. Bond options are price-based and give the option holder the right to buy or sell bonds at the strike price. Interest rate options are yield-based; they are based on an underlying yield and settle in cash. Bond and yield-based options are European style.

Question 40

Debt to yield options - debt options

Answer 40

The underlying security in a yield option is a bond. When interest rates go up, bond prices go down, and vice versa; therefore, an investor who thinks that interest rates are going higher will purchase puts (or sell calls) and an investor who thinks that interest rates are going down will purchase calls (or write puts).

Contract size for T-notes and T-bonds is $100,000; 100 bonds or notes with a $1,000 face value.
Contract size for T-bills is $1,000,000; 100 T-bills with $10,000 face value.
Strikes prices are a percentage of face value. For example, a T-note calls with a strike price of 98 means that the holder has the right to purchase 100 T-notes at 98 or $98,000.
T-bond and T-note premiums are in 32nds, just like bonds and points are $1,000. For example, if a T-note call has a premium of 2.10 the dollar value of the premium is $2,312.50. 1/32 = 31.25 × 10 = 312.50.
T-bill points are $2,500; one point is 10,000 but T- bills have 13-week maturities, so $10,000/4 = $2,500. Premiums are quoted as a percentage of face value. The dollar value of T-bill option premium of 0.6 is $2,500 × .6 = $1,500.

Question 41

Debt to yield options - yield-based options

Answer 41

Interest rate options are based on an underlying yield. Interest rate options are available on T-bills, T-notes and T-bonds. If investors think interest rates are going higher, they will buy calls (or sell puts), and if they think interest rates are going lower, they will buy puts (or sell calls). Exercise settlement is in cash; the option holder receives cash equal to the intrinsic value of the option.

• The underlying value is the interest rate multiplied by 10. For example, the underlying value on an option with a 5.5% yield is 55.00
• Strike prices are based on interest rates; so a 55 strike price equals 5.5% yield.
• Interest rate premiums are multiplied by 100. For example, TNX 45.00 call @ $3. The total premium is $300.
• At expiration if interest rates are 5.5%, the holder of TNX 45.00 call would exercise and receive the intrinsic value of ten points. 10 × 100 = $1,000.

Investors can use interest rate options to speculate on the direction of interest rates and to hedge a bond portfolio against a rise in interest rates. They could also write bond or interest rate options to increase the yield on their portfolio.

Question 42

Foreign currency options

Answer 42

World currency options are options on foreign currencies. It’s important to remember that a currency option is never on the U.S. dollar. The option is always on the foreign currency. A little trick to remember is that foreign currency options are quoted in U.S. cents. So you move the decimal two digits to the left when calculating premium and strike price.

Though you are always betting on the foreign currency, the strike price and premium are expressed in U.S. dollars. Foreign currency options normally trade on the Philadelphia Stock exchange. Trading hours for foreign currency options run from 9:30 a.m. to 4 p.m. Eastern.

The same option fundamentals apply to all options, regardless of the underlying asset. With world currency options, a long call is still bullish and a long put is still bearish. The only thing different is the underlined security. Instead of an equity or index, the underlying asset is a foreign currency.

The term for the current market value of the foreign currency is spot price.

Contract Sizes

Foreign currency options normally have a contract size of 10,000, so one contract represents 10,000 units of the foreign currency. One exception is Japanese yen. A yen contract represents ¥1 million per contract.

Question 43

Foreign currency options - exercise

Answer 43

World currency options exercise European-style, meaning they can only be exercised on the expiration date. World currency options expire on the third Friday of the expiration month. There are also limits of the number of contracts an investor may hold on the same side of the market-bullish side or bearish side. Remember that long calls and short puts are both bullish. Short calls and long puts are both bearish. Position limits for an individual (or an individual acting in concert) are 200,000 contracts on the same side of the market.

Question 44

Foreign currency options - strategies

Answer 44

Foreign currencies go in the opposite direction of the U.S. dollar. So if you follow the U.S. dollar, and the dollar is declining against the foreign currency, you are bullish on the foreign currency. Conversely, if you expect the dollar to strengthen, you are bearish on the foreign currency. A memory trick to assist in answering foreign currency test questions is to remember that Exporters buy Puts, Importers buy Calls, or “EPIC.”

Question 45

Options exchanges - know this slide

Answer 45

The largest option exchange is the Chicago Board Options Exchange (CBOE). Trading posts are scattered throughout the trading floor where options on stocks, indexes and other securities trade. Option orders are transmitted to the trading floor via the CBOE’s Order Support System.
- The OSS is an automated execution system that allows member firms to transmit option orders directly to the trading post. When these orders are executed, the system automatically notifies the member firm of the completed transaction.

At each trading post, there is an Order Book Official (OBO) who keeps track of public limit orders and oversees the opening and closing of the trading day. The OBO works for the exchange and cannot trade for his own account.

On the trading floor, there are also Floor Brokers and Market-Makers. Either Floor Brokers or Designated Market Makers execute trades for customers. There are independent Floor Brokers and Floor Brokers who are employees of member firms who execute orders for their firm’s customers. Market Makers are members of the exchange who trade for their own account. A market maker will make bids and offers for options when there is a shortage of public orders; they literally make markets.

The CBOE regulates how options are traded. In order to promote an orderly market open in options trading, each options series goes through an opening rotation. An option series is defined as all options of one issuer with the same class (all calls of one issuer or all puts of one issuer are another), exercise price and expiration month. The Order Book Official opens trading by calling for Bids and Offers for each series. This establishes an opening price for each options series. Only after all series have gone through the trading rotation will all options series be available for open trading. The converse holds true at the market close: Each series goes through a closing rotation to get closing Bids and Offers.

Note: An option on a particular stock will not open or start trading until the underlying stock is trading at its primary market, i.e., on the exchange, NASDAQ, etc.

Rules:
- Trading Halts: When trading is halted on a stock, trading in options on that stock is halted by the options exchange.
- Restricted stock: Restricted stock cannot be used to cover short calls.
- Reporting: Member firms have to report to the exchange information about members, employee and customer accounts that have 200 or more option contracts on the same side of the market. This doesn’t constitute a position limit violation; it’s only a reporting requirement.