TAIWAN FUTURES EXCHANGE-Foreign Participation-Product-Equity Index Options-TAIEX Options

Spot month, the next two calendar months, and the next two quarterly months.
Upon expiration of near month, new contract month will be listed for trading beginning on the next regular trad-ing session.

Weekly Options:

Wednesday Expiration：The TAIFEX may, in the regular trading session on the Wednesday in a given trading week, add the weekly options for which the initial trading day is the given Wednesday and the last trading day is the second Wednesday following the initial trading day. The exception is the first Wednesday of each month.
Friday Expiration：The TAIFEX may, in the regular trading session on the Friday in a given trading week, add the weekly options for which the initial trading day is the given Friday and the last trading day is the second Friday following the initial trading day.

Strike Price Interval

Strike Price (K)	The Weekly Options		The Monthly Options (Spot month and the next two calendar months)	The Quarterly Options (The next two quarterly months)
Strike Price (K)	within 3% of the underlying index above and below	others		The Quarterly Options (The next two quarterly months)
K<3,000	25	50	50	100
K≧3,000	50	100	100	200

Strike (Exercise) Price

For listing series of new expiration months or weeks, or series with new strike prices for existing expiration dates, TAIFEX shall, based on the previous business day's closing price of the underlying index, in the regular trading session consecutively introduce series with new strike prices according to the strike price interval above, until the following conditions are satisfied:

For the Weekly Options, the highest and lowest strike prices should cover 10 percent above and below the underlying index.
For the Monthly Options, the highest and lowest strike prices should cover 15 percent above and below the underlying index.
For the Quarterly Options, the highest and lowest strike prices should cover 20 percent above and below the underlying index.

Premium Quotation

< 10 points: 0.1 points (NTD 5)
>=10 points,<50 points: 0.5 points (NTD 25)
>=50 points, <500 points: 1 point (NTD 50)
>=500 points, <1,000 points: 5 points (NTD 250)
>=1,000 points: 10 points (NTD 500)

Price Limits

+/- 10% of the latest closing price of the underlying index

Position Limit

Any investor's aggregate open same-side positions in the Contract for various delivery months and weeks at any time shall not exceed the limit standards announced by TAIFEX.
Institutional investors may apply for an exemption from the above limit on trading accounts for hedging purposes.
These position limits are not applicable to omnibus accounts, with the exception of undisclosed omnibus accounts, which accounts are subject to the limits for institutional investors.

Trading Hours

Trading days are the same as the regular business days of the Taiwan Stock Exchange

Regular trading session: 08:45 AM - 1:45 PM Taiwan time, 08:45 AM - 1:30 PM on the last trading day for the expired contract.
After-hours trading session: 03:00 PM on trading day of TWSE - 05:00 AM of the following day; no after-hours trading session on the last trading day for the delivery month contract.

Last Trading Day

For the Weekly Options, the last trading day is the second Wednesday / Friday following its listing day.
For the Monthly and Quarterly Options, the last trading day is the third Wednesday of the delivery month.

Expiration Day

The same day as the last trading day

Final Settlement Price

The average price of the underlying index disclosed within the last 30 minutes prior to the close of trading on the final settlement day.Method used to calculate final settlement price.

Settlement

Cash settlement. An option that is in-the-money and has not been liquidated or exercised on the expiration day shall, in the absence of contrary instructions delivered to the Exchange by the Clearing Member representing the option buyer, be exercised automatically.

If the last trading day falls on a holiday or if trading cannot proceed on that day due to a force majeure event, the next business day shall be the last trading day. (Please refer to Trading Rules.)

TAIEX Options Information

Calculating Theoretical Options Price

Methodology of Calculating Theoretical European Options Price