Power Options

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:

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.