Currently the last trading day for wheat options contracts is the Friday which precedes by at least five business days the first notice day of the corresponding futures contract. For serial options this currently is the Friday which precedes by at least five business days the last business day of the calendar month immediately preceding the option serial month.
The last trading day is changing to the Friday which precedes by at least two business days the first notice day of the corresponding futures contract. For serial options this will be the Friday which precedes by at least two business days the last business day of the calendar month immediately preceding the option serial month.
The new last trading day will be effective with the January 2002 contract month (currently pending approval by the Commodity Futures Trading Commission). Therefore, anyone entering into a wheat option position after the December 2001 contract month will be subject to the amended last trading day.
Options give a buyer the right, but not the obligation, to buy or sell a KCBT wheat futures contract at a specified price. KCBT wheat options have been trading since 1984.
