G85-769 Options Contract Specifications On Grain Futures Contracts

This publication, the second of six NebGuides on agricultural grain options, explains specifications and uses of futures contracts for corn and soybean trading. Before using options on agricultural futures contracts, it is essential to understand what constitutes an options contract. This publication outlines contract specifications of corn and soybean options on corresponding futures contracts presently traded at the Chicago Board of Trade (CBT). All contract specifications are discussed including: price quotations, maximum and minimum price fluctuation figures, and last trading day for an option. How strike prices and premium values are determined in relation to futures contract prices also will be explained. For other commodity specifications at different exchanges, contact the specific exchange or a broker