CBOE Research Circular #RS16-754

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Randolf Farmer
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1 CBOE Research Circular #RS Date: October 12, 2016 To: Permit Holders From: Scott Speer RE: Linear Technology Corporation ("LLTC") Proposed Merger with Analog Devices, Inc. ("ADI") Shareholders of Linear Technology Corporation ("LLTC") will vote on Tuesday, October 18, 2016, to approve a proposed Merger between LLTC and Tahoe Acquisition Corp., a wholly owned subsidiary of Analog Devices, Inc. ("ADI"). Pursuant to the terms of the Merger, each share of LLTC Common Stock outstanding immediately prior to the consummation of the Merger will be converted into the right to receive of a share of ADI Common Stock, plus $46.00 cash. Note: both the ADI share and cash amounts are subject to adjustment as described in the LLTC/ADI Proxy Statement/Prospectus dated September 16, The Merger is expected to become effective during the first half of THE FOREGOING IS AN UNOFFICIAL SUMMARY OF THE TERMS OF THE MERGER, PREPARED BY CBOE FOR THE CONVENIENCE OF ITS PERMIT HOLDERS. CBOE ACCEPTS NO RESPONSIBILITY FOR THE ACCURACY OR COMPLETENESS OF THE SUMMARY. PERMIT HOLDERS SHOULD REFER TO THE LINEAR TECHNOLOGY CORPORATION AND ANALOG DEVICES, INC. JOINT PROXY STATEMENT/PROSPECTUS DATED SEPTEMBER 16, 2016, FOR THE AUTHORITATIVE DESCRIPTION OF THE MERGER AND ALL OF ITS TERMS AND CONDITIONS. Contract Adjustments Pursuant to Article VI, Section 11 and 11A, of OCC's By-Laws, all outstanding LLTC options shall be adjusted as follows. On the business day immediately following the Effective Time of the Merger, each adjusted Linear Technology Corporation contract will require the receipt or delivery, subject to adjustment of: (A) 23 shares of ADI Common Stock; plus (B) $4, cash; plus (C) cash in lieu of 0.21 fractional share of ADI Common Stock. Premiums for the adjusted Linear Technology Corporation options will continue to be calculated on the basis of a multiplier of 100, i.e., for premium and strike-price extensions, 1.00 will equal $100. The Linear Technology Corporation option symbol will change to ADI1. [Any FLEX series that may exist will be adjusted in a similar manner to the standardized option.] Adjusted Option Symbols On the business day immediately following the Effective Time of the Merger, trading in the LLTC option series will be on an adjusted basis. At 8:30 A.M., Chicago time, the following symbol adjustments to the options will be effected: LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P

2 LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P

3 LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P

4 LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P 2018 LEAPS LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P LLTC C/P => ADI C/P

5 * Any additional LLTC series that are added prior to the effective time of the merger will also be adjusted in the manner described above. Settlement OCC will delay settlement of the ADI component and cash portion of the ADI1 deliverable until the final merger consideration and cash in lieu of fractional ADI Common Shares are determined. Upon determination of the merger consideration and cash in lieu amount, OCC will require Put exercisers and Call assignees to deliver the appropriate number of ADI shares and cash amount. Hypothetical Pricing Example Based on a Exchange Ratio, the Linear Technology Corporation adjusted contract deliverable is: (A) 23 shares of ADI Common Stock; plus (B) $4, cash; plus (C) cash-in-lieu of 0.21 share of ADI Common Stock. Assume a hypothetical cash-in-lieu amount of $ Under these circumstances a hypothetical adjusted ADI1 underlying "price" may be determined as follows: ADI1 = 0.23(ADI) + $ $13.50/100, rounded to the nearest 1/100 th. For example, if ADI closes at $64.40, the underlying "per-share price" of ADI1 would be: 0.23($64.40) + $ $13.50/100 = $ $ $0.135 = $ = $60.95 (rounded to the nearest 1/100 th ) In this hypothetical example, an ADI1 60 Call contract would be $95.00 in the money (difference of strike amount of $60 x 100 = $6, and the underlying deliverable "value" of $6, = $60.95 x 100). GTC Order Conversion On the Effective Date of the Merger, immediately after the CBOE close, the system will convert or cancel all resting orders in the LLTC order book. If your firm has requested, all booked orders (phone, wire, and electronic) and all ORS orders residing outside the book (booth or crowd routed) will be converted reflecting the adjustments. If your firm has requested, all booked orders and ORS orders residing outside of the book will be canceled. If your firm receives CXL drops, the CXL confirms will print at your booth at 3:15 p.m. ORS CXLs will also be transmitted electronically to your branches. A report will be available at the Help Desk listing the orders that are converted or canceled. If converted, this list will also show how the new orders will be adjusted. This report will be available on request anytime during the day prior to the night of the adjustment. Questions regarding this memo can be addressed to Options Industry Services at OPTIONS ( ). CBOE contract adjustment memos can also be accessed from CBOE.com at the following web address:

CBOE Research Circular #RS16-161

CBOE Research Circular #RS16-161 Date: February 29, 2016 To: Permit Holders From: Scott Speer RE: Symantec Corporation ("SYMC") CONTRACT ADJUSTMENT FOR SPECIAL CASH DIVIDEND Ex-Date: March 4, 2016 Symantec