CME Group, serving the risk management needs of customers around the world and engaged in diverse derivatives exchange, launches a Central Appalachian coal options contract, on ClearPort(R) and the New York energy trading floor, beginning November 23 for trade date November 24.
The American style options contract (commodity code: C1) will be listed for the current year plus the next four years, beginning with the January 2009 contract. There will be five exercise prices in increments of $2.50 per tons above and below the at-the-money strike price. It will make up 1,550 tons in size with a minimum price fluctuation of $0.01 per ton.
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