CBOT - Treasury 10 Yr Note Quotes Open Auction

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10 Year U.S. Treasury Notes Flexible Options

Contract Size

One CBOT 10-Year U.S. Treasury Note futures contract (of a specified delivery month).

Description

Flexible options on 10-Year U.S. Treasury Note futures are permitted in put and calls which do not have the same underlying futures contract, same strike price, same exercise style, and same last day of trading as standard options, However, flexible options are also permitted in puts and calls that have the same underlying futures contract, same strike price, same exercise style, and same last day of trading as standard options that are not at that time listed for trading. The minimum size for requesting a quote and/or trading in a flexible option series is 50 contracts, each having a face value at maturity of $100,000.

Tick Size

1/2 of 1/64 of a point ($7.8125/contract) rounded up to the nearest cent/contract.p>

Contract Months

Trading may be conducted in flexible options in any month up through the most distant futures contract.

Last Trading Day

The last day of trading in a flexible option shall be the expiration day, and these options expire at 7:00 pm, Chicago time. However, flexible options that have the same specifications of standard options that are not listed for trading will follow the expiration and exercise procedures for standard options.

Expiration

Unexercised flexible options on 10-Year U.S. Treasury Note futures shall expire at 7:00 pm Chicago time on the last day of trading. The expiration date can be any date that is not a weekend or an exchange holiday but cannot go beyond the standard options expiration date. Those flexible options that have the features of yet-to-be listed standard options become standard options when the series is listed. These options follow the expiration and exercise procedures as specified in the standard option regulations.

Trading Hours

7:20 a.m. - 2:00 p.m. Chicago time, Monday - Friday.

Ticker Symbols

American-style options: ANC for calls/ANP for puts
European-style options: ENC for calls/ENP for puts

Daily Price Limit

None.

Strike Price Interval

Strike prices must be specified in points and 32nds of points per 10-Year U.S. Treasury Note futures contract. Strike prices can be any strike that is not beyond the range of currently listed strike prices for the standard options.

Exercise

European Style: The buyer of the futures option may exercise only at expiration.
American Style: The buyer of a futures option may exercise the option on any business day prior to expiration by giving notice to the Board of Trade clearing services provider by 6:00 pm Chicago time. Options that expire in-the-money are automatically exercised into a futures position, unless specific instructions are give to the Board of Trade clearing services provider.

Margin Information

Find information on margins requirements for the 10 Year U.S. Treasury Notes Flexible Options.

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