2nd Friday Weekly Options on Euro-Bund Futures (OGB2)

Contract standard

Futures on notional long-term debt instruments issued by the Federal Republic of Germany with a remaining term of 8.5 to 10.5 years and a coupon of 6 percent.

Contract size

One Euro-Bund Futures contract.

Settlement

The exercise of a Weekly Option on Euro-Bund Futures results in the creation of a corresponding position in the Euro-Bund-Futures for the option buyer as well as the seller to whom the exercise is assigned. The position is established after the Post-Trading Full Period of the exercise day, and is based on the agreed exercise price.

Price quotation and minimum price change

Price quotation is based on points. The minimum price change is 0.01 points, equivalent to a value of EUR 10.

Contract months

Up to 5 weeks:The five next weeks for the first, second, third, fourth and fifth week of the following maturity month with a Weekly Options expiration. On expiration days with an expiration of the standard monthly options series (OGBL), no Weekly Option will be available.

Weekly Options with an expiration date between Christmas and New Year's Eve are not available for trading.

Calendar months: The maturity month of the underlying futures contract is the quarterly month following the expiration month of the option.
Quarterly months: The maturity month of the underlying futures contract and the expiration month of the option are identical.

Last trading day

Last trading day is the Friday of the expiration week, if this is an exchange day; otherwise the exchange day immediately preceding that day. If the immediately preceding exchange day is not in the same calendar month as the Friday of the expiration week, the last trading day will be the exchange day immediately following the Friday of the expiration week.

Close of trading for all Weekly Options on the last trading day is at 17:15 CET.

Daily settlement price

The daily settlement price is established by Eurex. The daily settlement prices for Weekly Options on Euro-Bund Futures are determined trough the binomial model according to Cox/Ross/Rubinstein.

Exercise

American-style; an option can be exercised until the end of the Post-Trading Full Period (18:00 CET) on any exchange day during the lifetime of the option.

Exercise prices

0.5 basis points

Number of exercise prices

Upon the admission of the options, at least nine exercise prices shall be made available for each term for each call and put, such that four exercise prices are in-the-money, one is at-the-money and four are out of-the-money.

Option premium

The premium is settled using the futures-style method.

This file provides an overview of mistrade ranges for Options and Futures including information on their behavior close to expiration and in stressed markets.