Details
American Call Options

Settle in USDT: When the option is exercised at or before expiry, if the settlement price is less than or equal to the strike price, there will be no return; if the settlement price is greater than the strike price, the return = Order Quantity x (Settlement Price - Strike Price).

Case: On Oct 31, 2021, Mr. Lee purchased the following product:

  • Product Type
    Trading Tokens
    Strike Price
    Amount
    Expiry Date
    Pay premium
  • American Call Options
    USDT
    54500
    0.5
    Dec 31, 2021
    2000 USDT

On Nov 21, 2021 (any day before expiration), Mr. Lee chooses to exercise the option. If the settlement price is 52,000 USDT (the settlement price is less than or equal to the strike price), there will be no return; if the settlement price is 59,000 USDT (settlement price is greater than the strike price), the return = 0.5 x (59,000 – 54,500) = 2,250 USDT Note: The settlement price here is the index price of the underlying asset at the time of early exercise.

On Dec 31, 2021 (the expiry date), if the settlement price is 54,500 USDT (the settlement price is less than or equal to the strike price), there will be no return; if the settlement price is 63,000 USDT (the settlement price is greater than the strike price), the return = 0.5 x (63,000 – 54,500) = 4,250 USDT

Note: The settlement rules are the same for early exercise and exercise at expiry, only the time to request the settlement price is different.

American Put Options

Settle in USDT: When the option is exercised at or before expiry, if the settlement price is greater than or equal to the strike price, there will be no return; if the settlement price is less than the strike price, the return = Order Quantity x (Strike Price - Settlement Price).

Case: On Oct 31, 2021, Mr. Lee purchased the following product:

  • Product Type
    Trading Tokens
    Strike Price
    Amount
    Expiry Date
    Pay premium
  • American Put Options
    USDT
    54500
    0.5
    Dec 31, 2021
    2000 USDT

On Nov 21, 2021 (any day before expiration), Mr. Lee chooses to exercise the option. If the settlement price is 59,000 USDT (the settlement price is greater than or equal to the strike price), there will be no return; if the settlement price is 52,000 USDT (settlement price is less than the strike price), the return = 0.5 x (54,500 - 52,000) = 1,250 USDT Note: The settlement price here is the index price of the underlying asset at the time of early exercise.

On Dec 31, 2021 (the expiry date), if the settlement price is 54,500 USDT (the settlement price is greater than or equal to the strike price), there will be no return; if the settlement price is 48,000 USDT (the settlement price is less than the strike price), the return = 0.5 x (54,500 - 48,000) = 3,250 USDT

Note: The settlement rules are the same for early exercise and exercise at expiry, only the time to request the settlement price is different.

European Call Options

Settle in USDT at expiry: If the settlement price is less than or equal to the low strike price, there is no return; if the settlement price is greater than the low strike price and is less than or equal to the high strike price, the return = Order Quantity x (Settlement Price - Low Strike Price); If the settlement price is greater than the high strike price, the return = Order Quantity x (High Strike Price - Low Strike Price); if you choose to sell the option before expiration: the return = Sell Price.

Case: On Oct 31, 2021, Mr. Lee purchased the following product:

  • Product Type
    Trading Tokens
    The Low Stike Price
    The High Stike Price
    Amount
    Expiry Date
    Pay premium
  • European Call Options
    USDT
    52000
    55000
    0.5
    Dec 31, 2021
    1000 USDT

(1)On Dec 31, 2021 (the expiry date), if the settlement price is 50,000 USDT (the settlement price is less than or equal to the low strike price), there will be no return; if the settlement price is 54,500 USDT (the settlement price is greater than the low strike price and is less than or equal to the high strike price), the return = 0.5 x (54,500 - 52,000) = 1,250 USDT; if the settlement price is 59,000 USDT (the settlement price is greater than the high strike price), the return = 0.5 x (55,000-52,000) = 1,500 USDT

(2)On Nov 21, 2021 (any day before expiration), Mr. Lee chooses to sell the option. If the sell price is 1,200 USDT, the return is 1,200 USDT

European Put Options

Settle in USDT at expiry: If the settlement price is greater than or equal to the high strike price, there is no return; if the settlement price is less than the high strike price and is greater than or equal to the low strike price, the return = Order Quantity x (High Strike Price - Settlement Price); If the settlement price is less than the low strike price, the return = Order Quantity x (High Strike Price - Low Strike Price); if you choose to sell the option before expiration: the return = Sell Price.

Case: On Oct 31, 2021, Mr. Lee purchased the following product:

  • Product Type
    Trading Tokens
    The Low Stike Price
    The High Stike Price
    Amount
    Expiry Date
    Pay premium
  • European Put Options
    USDT
    50000
    53000
    0.5
    Dec 31, 2021
    1000 USDT

(1)On Dec 31, 2021 (the expiry date), if the settlement price is 55,000 USDT (the settlement price is greater than or equal to the high strike price), there will be no return; if the settlement price is 51,500 USDT (the settlement price is less than the high strike price and is greater than or equal to the low strike price), the return = 0.5 x (53,000 – 51,500) = 750 USDT; if the settlement price is 48,000 USDT (the settlement price is less than the low strike price), the return = 0.5 x (53,000-50,000) = 1,500 USDT

(2)On Nov 21, 2021 (any day before expiration), Mr. Lee chooses to sell the option. If the sell price is 800 USDT, the return is 800 USDT

Touch Option Double One-Touch

Settle in USDT: If the underlying price touches or exceeds the barrier levels (either above or below) at any time before expiration, the payout amount is earned. If the underlying price remains within the barrier levels until expiration, the option expires worthlessly. The option cannot be sold before expiration.

Case: On Oct 31, 2021, the underlying asset was priced at 54,500 USDT. Mr. Lee purchased the following product:

  • Product Type
    Trading Tokens
    Lower Barrier Price
    Upper Barrier Price
    Expiry Date
    Payout Amount
    Pay premium
  • Double One-Touch
    USDT
    50000
    60000
    Dec 31, 2021
    1000 USDT
    600 USDT

(1)The underlying price has been fluctuating within the barrier levels. At a certain moment on Nov 10, 2021, the underlying price rises above 60,000 USDT. At that moment, Mr. Lee receives the payout of 1,000 USDT. PNL = 1,000 - 600 = 400 USDT

(2)The underlying price has been fluctuating within the barrier levels. At a certain moment on Dec 30, 2021, the underlying price falls to 50,000 USDT. At that moment, Mr. Lee receives the payout of 1,000 USDT. PNL = 1,000 - 600 = 400 USDT

(3)The underlying price remains within the barrier levels until expiration. On the expiration date, Mr. Lee receives nothing. PNL = 0 - 600 = -600 USDT

Touch Option Double No-Touch

Settle in USDT: If the underlying price remains within the barrier levels until expiration, the payout amount is earned on the expiration date. If the underlying price touches or exceeds the barrier levels (either above or below) at any time before expiration, the option becomes null and void instantly. The option cannot be sold before expiration.

Case: On Oct 31, 2021, the underlying asset was priced at 54,500 USDT. Mr. Lee purchased the following product:

  • Product Type
    Trading Tokens
    Lower Barrier Price
    Upper Barrier Price
    Expiry Date
    Payout Amount
    Pay premium
  • Double No-Touch
    USDT
    50000
    60000
    Dec 31, 2021
    1000 USDT
    600 USDT

(1)The underlying price has been fluctuating within the barrier levels. At a certain moment on Nov 10, 2021, the underlying price rises above 60,000 USDT. At that moment, the option becomes null and void. PNL = 0 - 600 = -600 USDT

(2)The underlying price has been fluctuating within the barrier levels. At a certain moment on Dec 30, 2021, the underlying price falls to 50,000 USDT. At that moment, the option becomes null and void. PNL = 0 - 600 = -600 USDT

(3)The underlying price remains within the barrier levels until expiration. On the expiration date, Mr. Lee receives the payout of 1,000 USDT. PNL = 1,000 - 600 = 400 USDT