Today marked the day when the derivative contracts of S&P 500 and Dow Jones Industrial Average (DJIA) -- the two key indices of the US stock market - began trading at NSE.
This is an historic event indeed. Now we get the chance to speculate on these global indices. Some details below to get you started.
S&P® Options Contract Specifications
Ticker Symbol
S&P500
Contract Size
250 units
Tick Size
0.05
Trading Hours
As in equity derivative segment
No. of strikes/strike intervals
12-1-12 strikes with 5 point interval and further 4-4 strikes of 10 point interval.
Expiry Date
3rd Friday of the respective contract month. In case third Friday is a holiday in USA or in India the contract shall expire on the preceding business day.
Contract months
3 serial monthly contracts and 3 Quarterly expiry contracts in the Mar-Jun-Sep-Dec cycle
Option Type
The options contracts shall be European styled which can be exercised only on the expiration date
Daily Settlement Price
Daily premium settlement
Final Settlement Price
All open positions at close of last day of trading shall be settled to the Special Opening Quotation (SOQ) of the S&P 500 ndex on the date of expiry (http://www.cmegroup.com /trading/equity-index/files/SOQ.pdf)
Final Settlement Procedure
Final settlement will be Cash settled in INR based on final settlement price. long positions of in-the money contracts shall be assigned to open short positions in option contracts.
Final Settlement day
All open positions on expiry date shall be settled on the next working day of the expiry date (T+1)
Position Limits
The Trading Member/Mutual Funds position limits as well as the disclosure requirement for clients is same as applicable in case of domestic stock index
0 comments:
Post a Comment