1.   N may be interpreted as the probability of the option contract being in-the-money at maturity.

2.   An option contract giving a right to buy is a call option, while one that gives a right to sell is a put option.

3.   Such tailor made option contracts should be distinguished from the traded options we consider here.

4.   In contrast, the value of the option contract cannot be negative since it is only exercised if it has a positive value.

5.   Of course, in order to be able to establish an option contract on an underlying futures contract, the futures contract must have a prior existence.

6.   Option contracts, however, tend to have thinner markets than futures contracts.

7.   But their success may also be due to the fact that MATIFSA appointed five designated market makers to ensure sufficient liquidity and tight spreads in the option contract.

8.   Trading in this fungible option contract takes place for ten hours each day, with a one hour overlap between Amsterdam and New York.

9.   What results when the option is not exercised is not in any sense preordained, except by the terms of the option contract itself.