Underlying

Cotton No.1Futures Contract

Contract Type

Call Option, Put Option

Trading Unit

One cotton No.1 futures contract

Price Quotation

Chinese yuan (CNY) per metric ton

Minimum Price Fluctuation

CNY1/metric ton

Price Limit

The same as the price limit of the cotton No.1 futures contract

Contract Months

The two consecutive nearby months of the underlying futures contract; the options contracts of the following months will be listed on the trading day following the day when the open interest (two-sided) of the underlying futures contracts exceed 5000 contracts after clearing.

Trading Hours

Monday to Friday (except public holidays)

9:00 a.m.—11:30 a.m. 13:30 p.m.—15:00 p.m. (Beijing time)

Other trading hours stipulated by Zhengzhou Commodity Exchange

Last Trading Day

The 3rd trading day of the month prior to the futures delivery month and other dates stipulated by Zhengzhou Commodity Exchange

Expiration Day

The same as the last trading day

Strike Price

Based on the settlement price of the previous trading day of cotton No.1 futures contract, six in-the-money option contracts, one at-the-money option contract and six out-of-the-money option contracts will be listed according to the strike price interval.

The strike price interval is: CNY100/metric ton when the strike price is less than or equal to CNY10,000/metric ton; CNY200/metric ton when the strike price is greater than CNY10,000/metric ton and less than or equal to CNY20,000/metric ton; CNY400/metric ton when the strike price is greater than CNY20,000/metric ton.

Exercise Style

American. The buyer can submit the application for exercising cotton No.1 option during the trading hours on  any trading day before the expiration day. The buyer can submit the application for exercising or waiving the exercise before 15:30 on the expiration day.

Product Code

Call option: CF–contract month– C– strike price

Put option: CF–contract month –P –strike price

Listed Exchange

Zhengzhou Commodity Exchange