Premiums Flashcards
1
Q
What is the only variable in agricultural options traded on the CBT?
A
The premium
2
Q
What does the premium depend on?
A
Market conditions such as volatility, time until an option expires, econòmic variables
3
Q
When are the trading months for the standard option contracts?
A
The same as the underlying future contacts
4
Q
When are the standard option months for corn?
A
December, March, may July and September. Same as corn futures
5
Q
What are serial option months?
A
Short term option contracts trading for approx 30 days, that expire during the months that there is not a standard option contract expiring.
6
Q
When are corn serial option months?
A
Jan, Feb, April, June, August October and November
