NOTES TO FINANCIAL STATEMENTS
By writing a put option, the Fund, in exchange for the net premium received, accepts the risk of a decline in the
market value of the underlying security or currency below the exercise price. The liability representing the Fund's
obligation under an exchange traded written call or put option is valued at the last sale price or, in the absence of
a sale, the mean between the closing bid and asked price or at the most recent asked price if no bid and asked
price are available. Over the counter written options are valued using dealer supplied valuations.
In addition, the Fund may purchase, singly and in combination, call and put options on securities, currencies and
securities indices. Exchange traded purchased options are valued at the last sales price or, in the absence of a
sale, the mean between the closing bid and asked prices or at the most recent bid price if no bid and asked prices
are available. Over-the-counter purchased options are valued using dealer supplied valuations.
FUTURES CONTRACTS. The Fund may enter into interest rate, securities index and currency futures contracts
for bona fide hedging purposes. Upon entering into a futures contract, the Fund is required to deposit with a
broker an amount ("initial margin") equal to a certain percentage of the purchase price indicated in the futures
contract. Subsequent payments ("variation margin") are made or received by the Fund each day, dependent on
the daily fluctuations in the value of the underlying security, and are recorded for financial reporting purposes as
unrealized gains or losses by the Fund. When entering into a closing transaction, the Fund will realize, for book
purposes, a gain or loss equal to the difference between the value of the futures contract to sell and the futures
contract to buy. Futures contracts are valued at the most recent settlement price. Certain risks may arise upon
entering into futures contracts from the contingency of imperfect market conditions.
INDEXED SECURITIES. I