(1) Subject matter of the contract
The subject matter of soybean meal option contract is soybean meal futures contract. Compared with spot, commodity futures are more standardized, open, transparent and continuous in price, and are more suitable as the subject matter of options.
(2) transaction code
The forms of contract codes are call option (transaction code of the underlying futures contract-contract month -C- exercise price) and put option (transaction code of the underlying futures contract-contract month -P- exercise price). C and P represent the contract type codes of call option and put option respectively. For example, M 1705-C-3000 represents a call option with an exercise price of 3000 in May of Soybean Meal 20 17.
(3) Transaction entity
Option marketing unit refers to the marketing unit of the underlying futures contract corresponding to 1 hand option contract. Our option products are based on futures contracts, 1 soybean meal options correspond to 1 soybean meal futures contracts.
(4) Quotation unit
The quotation unit of soybean meal option is designed to be consistent with the underlying futures contract, and the quotation unit is RMB/ton.
(5) Minimum price change
The minimum change price refers to the minimum change in the unit price of the option contract. The minimum change price of soybean meal option is designed as 0.5 yuan/ton, which is half of the minimum change price of futures.
(6) Exercise methods
The exercise method of soybean meal option products in our institute adopts American option exercise method, and the buyer can exercise it on any trading day before and after the expiration date of the contract, which is flexible and convenient, and is the main popular way of commodity futures options.
(7) Contract month
The contract month refers to the delivery month of the underlying futures contract corresponding to the option contract. The month of the option contract is the same as that of the underlying futures contract. The months of soybean meal option contract are 1, 3, 5, 7, 8, 9,1,65438+February. When futures contracts of all months have corresponding option contracts, each futures contract has an option contract for hedging and strategy combination.
(8) Exercise price
Option exercise price refers to the price stipulated in the option contract, and the buyer has the right to buy or sell the underlying futures contract at some time in the future. The coverage of option exercise price should be wide enough to meet investors' investment demand for flat, real and imaginary options even when futures prices fluctuate greatly. However, within a certain range, the number of option exercise prices should be moderate, not too much. Too much will affect the liquidity of a single option contract, but not too little. Too little may lead to the lack of corresponding contract construction strategy combination. The exercise price specified by me shall cover the price range corresponding to the settlement price of the underlying futures contract of the previous trading day 1.5 times the price limit. With the change of futures price, when the exercise price range cannot cover the range of 1.5 times of the new futures price, the exercise price of options will be increased to meet the diversified investment needs of investors.
(9) Distance of exercise price
The exercise price range refers to the difference between two adjacent exercise prices of the same type of option contract with the same underlying futures contract. In order to match the price range of the underlying futures, I adopted the segmented exercise price range. When the exercise price of soybean meal is less than or equal to 2000 yuan/ton, the exercise price range is 25 yuan/ton; When the exercise price is between 2,000 yuan/ton and 5,000 yuan/ton, the distance is 50 yuan/ton; When the exercise price is more than 5000 yuan/ton, the spacing is 100 yuan/ton.
(10) trading time
Option trading time is designed to be consistent with futures trading time.
(eleven) the last trading day and maturity date.
The last trading day refers to the last trading day when an option contract can be traded. In order to give full play to the hedging function and ensure sufficient futures liquidation time after exercise, the last trading day of the option is set as the fifth trading day one month before the delivery month of the underlying futures contract, and the maturity date is the same as the last trading day.