|Contract Overview:||A power option contract represents an option to assume a short or long position in the underlying New York Mercantile Exchange (“NYMEX”) contract at the strike price.|
|Underlying Reference Contract:||See NYMEX Contract List below|
|Trade Date:||The date on which the parties enter into the options contract.|
|Option Style:||European Style: Allows the holder to exercise the option only at the expiration date.
American Style: Allows the owner to exercise the option at any time before the expiration date.
|Option Type:||Call Option: The right to buy the underlying NYMEX contract on a fixed date at a fixed price.
Put Option: The right to sell the underlying NYMEX contract on a fixed date at a fixed price.
|Strike Price:||The price agreed upon by the parties at which the buyer can exercise an option.|
|Expiration Date:||The date at which the option contract expires.|
|Expiration Time:||The time on which the option contract expires.|
|Settlement Date:||The date on which the option settles.|
|Settlement Type:||Cash Settlement: Requires the exchange of cash in the amount of the difference between the option strike price and the current value of the underlying NYMEX contract at the exercise date.|
|Premium Date:||The date on which the premium is due.|
|Quoting Convention & Min Increment:||Notional amount, agreed by the counterparties.|
|Minimum Size:||Notional amount, agreed by the counterparties.|
The terms and conditions of Power Options incorporate by reference such credit and other terms as the parties may establish through pre-existing bilateral agreement. Power Options have the following characteristics: