Dairy Futures and Options Tutorial

Your Rights As An Options Owner

Put Option

• Let Expire
  • No follow-up needed
• Sell Back or Cash Settle
  • Cash-in premium value
• Exercise
  • Choose short futures position at PUT strike and offset by cash settling at contract expiration

Call Option

• Let Expire
  • No follow-up needed
• Sell Back or Cash Settle
  • Cash-in premium value
• Exercise
  • Enter in a long futures position at CALL strike and offset by cash settling at contract expiration