The range of new contracts includes DME Oman Swap, DME Brent-Oman Swap, DME Oman Average Price Option, and DME Oman European-style Option
, subject to the final clearance from CFTC and DFSA.
The contracts -- Oman swap, Brent-Oman swap, Oman average price option, Oman European-style option
-- have been drafted and put out to consultation and are awaiting regulatory approval for launch, the exchange said.
The EUA options contract (commodity code AV) will be a European-style option
that will exercise into the underlying EUA futures contract.
The range of new contracts include DME Oman Swap, DME Brent-Oman Swap, DME Oman Average Price Option, and DME Oman European-style Option
, subject to the final clearance from CFTC.
A European-style option
is when the payment is determined based on a predefined point of time.
Central Time) on any Thursday of the contract month that is not the termination of a quarterly or serial European-style option
The American-style options will be offered in two months in the March Quarterly Cycle, and the European-style options
will be offered in two serial months.
At present time Company concentrates on Monte Carlo based methods like Black-Sholes model for European-style options
Options to be listed will include an average price option and underlying calendar swap, as well as American-style and European-style options
The Black-Scholes model was developed for European-style options
exercisable only at expiration.
The enclosed interactive CD supplements these concepts and includes a calculator for European-style options
, a bonus quiz, additional articles and links to helpful information.
They differ from European-style options
contracts, which may be exercised only on the expiration date.