In order to ensure the smooth implementation of the exercise on the expiration date of the option contract, you should fully understand the rules and relevant risks of the exercise of the option before participating in the option transaction, carefully read the relevant provisions on the exercise in the supplementary agreement of the futures brokerage contract, and prudently decide whether to hold the relevant option contract on the expiration date of the option contract and participate in the exercise of the relevant option contract. We hereby give the following tips on matters related to the expiration date of the option contract:
1、 The expiration date of CSI 300 Index Options io2002 contract is the third Friday of the contract expiration month, that is, February 21, 2020;
2、 The option contract of CSI 300 Index Options is European style, and the buyer can only exercise the right on the last trading day of the option contract;
3、 When the CSI 300 stock index option contract is exercised, the exchange will carry out cash delivery according to the settlement price on the last trading day. The settlement price on the last trading day is the arithmetic average price of the last two hours of the underlying index (CSI 300 index) on the last trading day (the calculation result is reserved to two decimal places). The daily price limit of stock index option contract (including the last trading day) is ± 10% of the closing price of the underlying index on the previous trading day;
4、client's position in an option contract under the same trading code is exercised with a net position.
5、CSI 300 Index Options contract do not support the submission of exercise and waiver of exercise through the client. On the last trading day of the stock index option contract, our company will submit the client's exercise fee as the minimum profit amount to the exchange within the time specified by the exchange. When the actual value of the contract due at the settlement of the day is greater than the minimum profit amount, the client's buyer's position will be automatically exercised. No Then the exercise will be waived.
Please do a good job in risk prevention to ensure the smooth transaction.
Notice is hereby given.
Cash delivery and automatic exercise
The stock index option products with cash delivery usually adopt the way of automatic exercise on the maturity date. At maturity, investors do not need to submit an application for exercise, and the qualified option contract exchange will automatically exercise the right. The method of automatic exercise simplifies the operation process of investors, and investors do not need to worry about the loss caused by forgetting to exercise or wrong exercise, which reduces the operational risk at delivery.
For example, an investor buys one lots CSI 300 index option and holds it to maturity. The settlement price on the last trading day of the contract is 0.12 (corresponding to 12 yuan), and the investor's exercise fee is 5 yuan per lot. Assuming that the investor chooses to exercise the right, after deducting the fee, there is still a return of 12 yuan-5 yuan = 7 yuan. The exchange will automatically exercise and deliver cash to such option contracts that still have earnings after deducting the exercise fee.
To sum up, CSI 300 index options are about to meet their first maturity and delivery. CSI 300 index options adopt the way of automatic exercise and cash delivery, which has the characteristics of convenient operation and low delivery risk. On the maturity date, investors do not need to apply for exercise. For the qualified option contracts, the exchange will automatically exercise them and complete the cash delivery by cash netting.