Canadian Derivatives Exchange*

Options on the US Dollar (USX)

Underlying issues

U.S. Dollar.

Trading unit

One contract represents 10,000 U.S. Dollars.

Expiry cycle

At a minimum, the nearest three expiries plus the next two expiries in the designated quarterly cycle: March, June, September, December. Annual expiry of January for long term options.

Premium quotation

Option premiums are quoted in Canadian cents per unit of foreign currency. For example, a premium quotation of 0.75 Canadian cents for an option on the U.S. dollar represents an aggregate premium value of 0.75 Canadian cents / US$ × US$10,000 × C$1/100 Canadian cents = C$75.

Aggregate premium value

The aggregate premium value for a contract is the premium quotation multiplied by the trading unit of a contract.

Minimum price fluctuation (tick size)

The minimum price fluctuation of the premium is 0.01 Canadian cent or a tick value of C$1.00 per unit of foreign currency. That is: 0.01 Canadian cent / US$ × US$10,000 × C$1/100 Canadian cents = C$1.00.

Strike prices

At a minimum, five strike prices bracketing the current spot rate.

Contract type

European style.

Last trading day

Trading ceases at 12:00 p.m. on the third Friday of the contract month, provided it is a business day. If it is not a business day, trading will cease at 12:00 p.m. on the first preceding business day.

Expiration day

The last trading day of the contract month.

Final settlement price

Cash-settled. The amount to be paid or received as final settlement of each option contract is determined by multiplying the trading unit by the difference between the exercise price and the Bank of Canada noon rate expressed in Canadian cents for the designated currency, vis-à-vis the Canadian dollar on the expiration date.

Position reporting threshold

500 contracts on the same side of the market, in all contract months combined.

Position limit

Information on position limits can be obtained from the Bourse as they are subject to periodic changes. See Circulars.

Trading hours

9:30 a.m. to 4:00 p.m.

Clearing corporation

Canadian Derivatives Clearing Corporation (CDCC).

Trading procedures

USX® is a registered trademark of Bourse de Montréal Inc.