Soybean meal options are now on the Dalian Commodity Exchange. The following are the contract details:

(1) Subject matter of the contract

The subject matter of the soybean meal option contract is the soybean meal futures contract. Compared with spot prices, commodity futures are highly standardized and have open, transparent and continuous prices, making them more suitable as the subject matter of options.

(2) Trading codes

The contract codes use call options (underlying futures contract trading code-contract month-C-exercise price), put options (underlying futures contract trading code- The format of contract month-P-strike price). C and P represent the contract type codes of call options and put options respectively. For example, M1705-C-3000 represents a call option on soybean meal with an exercise price of 3,000 in May 2017.

(3) Trading unit

The option trading unit refers to the trading unit of the underlying futures contract corresponding to one option contract. Our options products are options contracts based on futures contracts as the subject matter. One soybean meal option corresponds to one (10 tons) soybean meal futures contract.

(4) Quotation unit

The quotation unit of soybean meal options is designed to be consistent with the underlying futures contract, and the quotation unit is yuan (RMB)/ton.

(5) Minimum change price

The minimum change price refers to the minimum change in the unit price of the option contract. The minimum price change of soybean meal options is designed to be 0.5 yuan/ton, which is half of the minimum price change of futures.

(6) Exercise method

The exercise method of our soybean meal option products adopts the American option exercise method. The buyer can exercise the option on the expiration date of the contract and any trading day before it. Exercising rights is flexible and convenient, which is the main way to exercise rights in 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 options contract month is the same as the underlying futures contract month. The months of the soybean meal options contract are January, March, May, July, August, September, November, and December. When all months of the futures contract have corresponding option contracts, each futures contract has optional option contracts for hedging. and strategy combinations.

(8) Exercise price

The option exercise price refers to the price specified by the option contract and the buyer has the right to buy or sell the underlying futures contract at a certain time in the future. . The coverage of option exercise prices should be wide enough to satisfy investors' investment needs for at-the-money, in-the-money, and out-of-the-money options even when futures prices fluctuate greatly. However, within a certain range, the number of exercise prices of options should be appropriate and should not be too much. Too much will affect the liquidity of a single option contract, and it should not be too few. Too little may result in a lack of corresponding contracts to build a strategic portfolio. The Exchange stipulates that the exercise price should cover the price range corresponding to the settlement price of the underlying futures contract on the previous trading day plus or minus 1.5 times the daily price limit. As futures prices change, when the exercise price range cannot cover 1.5 times the price limit of the new futures price, the option exercise price will be added to meet the diversified investment needs of investors.

(9) Exercise price spacing

The exercise price spacing 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 underlying futures price range, we adopt a segmented exercise price interval. When the exercise price of soybean meal is less than or equal to 2,000 yuan/ton, the interval between exercise prices is 25 yuan/ton; when the exercise price is between 2,000 yuan/ton and 5,000 yuan/ton, the interval is 50 yuan/ton; the exercise price is greater than When the price is 5,000 yuan/ton, the gap is 100 yuan/ton.

(10) Trading hours

Option trading hours are designed to be consistent with futures trading hours.

(11) Last Trading Day and Expiration Date

The last trading day refers to the last trading day on which options contracts can be traded. In order to give full play to the hedging function and ensure sufficient time for futures closing after exercise, the last trading day of the option is set as the fifth trading day of the month before the delivery month of the underlying futures contract, and the expiration date is the same as the last trading day.