The CSRC has recently approved the Shanghai Futures Exchange to carry out copper option trading, and the contract was officially listed and traded on September 26th, 2008, 2065 438+265 438+0.
Option is a mature basic risk management tool in the international derivatives market. In March and April of 20 17, soybean meal option and sugar option were listed and traded on Dalian Commodity Exchange and Zhengzhou Commodity Exchange respectively. Over the past year or so, the market has been running smoothly and orderly, and its functions have been gradually brought into play, which has initially met the personalized and refined risk management needs of relevant agricultural enterprises and reduced the hedging cost. At the same time, copper industry enterprises suggest listing copper option products. Copper industry plays an important role in China's industrial system and commodity market. The development of copper option trading is conducive to improving the commodity derivatives market system, enriching the risk management means of copper enterprises and improving the risk management level of enterprises.
The CSRC will urge the Shanghai Futures Exchange to continue to make all preparations to ensure the smooth launch and steady operation of copper options.
Contract rules
What are the options?
2. The relationship between the buyer, the seller and the exchange
3. What is the contract unit?
Option contract unit refers to the contract multiplier corresponding to each option contract, and most option contract units are the same as the underlying futures. The contract unit of copper option is the same as that of 1 copper futures (5 tons), so when calculating the actual paid royalty, the disk price should be multiplied by 5.
4. What can I learn from the contract code?
We can know the types of underlying futures and options (C- call options; Put option), exercise the price. Taking Cu 1806-C-5 1000 as an example, we can know from the contract code that the meaning of this contract is that the buyer has the right to buy the underlying Cu 1806 futures at the price of 5 1000 after paying the royalties to the seller.
5. The difference between option expiration date and futures expiration date.
Maturity date/last trading day of copper options: the penultimate trading day of the first month before the delivery month of the underlying futures contract, and the exchange may adjust the last trading day according to national legal holidays.
The last trading day is the last day when the option contract can be bought and sold, and it is also the date when the buyer of the copper option (European option) can submit the exercise application. The expired buyer option is invalid.
Maturity month of copper option ≠ Maturity (delivery) month of underlying futures. For example, the delivery month of Cu 1807 is 65438+July 2008, and it will be delisted on 20 1807 16, while the expiration month of Cu 1807C5 1000 is June, and the delisted time is 20. The result of option exercise is to open a future positions, such as buying a call (put) option and opening a long (short) futures, then the option expires before the futures, so that investors can have enough time to deal with the obtained future positions.
6. Exercise distance
Exercise distance refers to the price difference between two adjacent exercise prices of an option contract based on the same contract target. Because the absolute price of the underlying copper futures is very high, the exercise distance of copper options is far greater than that of soybean meal options and sugar options that have been listed.
7. Price range
Option has price limit, but it has nothing to do with the price fluctuation of the option itself, but with the price fluctuation of the target.
Price ceiling price = settlement price of the option contract on the previous trading day+settlement price of the underlying futures contract on the previous trading day × price limit ratio of the underlying futures contract.
Daily limit price =Max (settlement price of option contract in the previous trading day-settlement price of target futures contract in the previous trading day × daily limit ratio of target futures contract, minimum change price of option contract)
8. Practice methods
According to the buyer's exercise time, options are divided into European and American. In listed commodity options, soybean meal option and sugar option are both American options, but copper option listed on Shanghai Futures Exchange is expected to be European option.
Theoretically speaking, American options can be exercised in advance, while European options can only be exercised on the expiration date, so American options have greater rights than European options. However, in the process of trading, few people exercise their rights in advance, because exercising rights in advance means losing all time value. If investors close their options positions by closing their positions, there is not much difference between trading American and European options.