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  • Options

     
     

    Put and call option contracts are also traded, based on the BM&F arabica futures contract expiring in the month after the delivery month of the option, also priced in United States dollars. There are seven trading positions: February, April, June, August and November, plus the next two positions in the following year. Buyers may decide to exercise options from the first business day following the day a position has been initiated up to the last trading day before expiry as follows:

    Put option: the buyer (holder) of the option may decide to sell, and the seller (issuer) of the option must buy the corresponding position on the arabica futures contract.

    Call option: the buyer (holder) of the option may decide to buy, and the seller (issuer) must sell the corresponding position on the arabica futures contract.

    All transactions are at the strike price for which the option was taken and settlement is effected according to all the usual exchange regulations. Of course, options are exercised only if they show a profit - otherwise they are simply allowed to expire.

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