Underlying

Cotton Futures Contract

Contract Type

Call Option, Put Option

Trading Unit

One cotton 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 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 open interests (single-sided) of their underlying futures contracts exceed 5000 lots after clearing.

Trading Hours

9:00-11:30 and 13:30-15:00(Beijing time) and other trading hours prescribed by Zhengzhou Commodity Exchange

Last Trading Day

The third-to-last trading day before the 15th calendar day (including the 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

The range of strike price is the previous trading day’s settlement price of the underlying futures contract plus or minus 1.5 times the current day’s price limit.

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 option during the trading hours on the expiration day or 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

Listing Exchange

Zhengzhou Commodity Exchange