Chapter 63A
Options on Lumber Futures
63A00.

SCOPE OF CHAPTER
This chapter is limited in application to options on Lumber futures. In addition to this chapter,
options on Lumber Futures shall be subject to the general rules and regulations of the Exchange
insofar as applicable.
For purposes of these rules, unless otherwise specified, times referred to herein shall refer to andindicate Central Prevailing Time (CPT).

63A01.

OPTIONS CHARACTERISTICS
63A01.A.
Contract Months and Trading Hours
Options contracts shall be listed for such contract months and scheduled for trading during suchhours as may be determined by the Exchange.
63A01.B.
Trading Unit
The trading unit shall be an option to buy, in the case of the call, or to sell, in the case of the put,one (1) Lumber Futures contract as specified in Chapter 63.
63A01.C.
Minimum Price Fluctuation
The price of an option shall be quoted in dollars per thousand board feet (mbf). The minimum pricefluctuation (also known as tick) shall be in multiples of $.10 per mbf.
63A01.D.
Underlying Futures Contract
1. Options in the Regular Cycle
For regular-cycle options, the underlying futures contract is the corresponding futures contract. For
example, the underlying futures contract for the January option contract is the January futurescontract.
2. Options Not in the Regular Cycle
For options that expire in months other than those in the regular cycle, the underlying futurescontract is the next futures contract in the regular cycle that is nearest to the expiration of theoption. For example, the underlying futures contract for the February option contract is the March
futures contract.
63A01.E.
Exercise and Exercise Prices
Transactions and exercise of options shall be conducted for option contracts as set forth in theStrike Price Listing and Exercise Procedures Table.
The Exchange may modify the procedure for the introduction of strike prices as it deems
appropriate in order to respond to market conditions.
63A01.F.
Position Limits, Exemptions, Position Accountability and Reportable Levels
The applicable position limits and/or accountability levels, in addition to the reportable levels, areset forth in the Position Limit, Position Accountability and Reportable Level Table in theInterpretations & Special Notices Section of Chapter 5.
A Person seeking an exemption from position limits for bona fide commercial purposes shall apply
to the Market Regulation Department on forms provided by the Exchange, and the Market
Regulation Department may grant qualified exemptions in its sole discretion.
Refer to Rule 559 for requirements concerning the aggregation of positions and allowable
exemptions from the specified position limits.
63A01.G.
Termination of Trading
1. Options in the Regular Cycle
Options trading shall terminate on the last scheduled Business Day of the month prior to thedelivery month of the underlying futures contract. In the event that the underlying futures market© Copyright Chicago Mercantile Exchange, Inc. All rights reserved.

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does not open on the scheduled Expiration Day, the option expiration shall be extended to the nextBusiness Day on which the underlying futures market is open for trading.
2. Options Not in the Regular Cycle
Options trading shall terminate on the last scheduled Business Day of the month prior to the option
contract month. In the event that the underlying futures market does not open on the scheduled
Expiration Day, the option expiration shall be extended to the next Business Day on which theunderlying futures market is open for trading.

63A02.

ASSIGNMENTIn addition to the applicable procedures and requirements of Chapter 7, the following shall apply tothe assignment of Lumber options.
Exercise Notices accepted by the Clearing House shall be assigned through a process of random
selection to Clearing Members with open short positions in the same series. A Clearing Member towhich an Exercise Notice is assigned shall be notified thereof as soon as practicable after such
notice is assigned by the Clearing House, but not later than 45 minutes prior to the opening oftrading in the underlying futures contract on the following Business Day.
The Clearing Member assigned an Exercise Notice shall be assigned a short position in theunderlying futures contract if a call was exercised or a long position if a put was exercised. TheClearing Member representing the option buyer shall be assigned a long position in the underlying
futures contract if a call was exercised and a short position if a put was exercised.
All such futures positions shall be assigned at a price equal to the exercise price of the option andshall be marked to market in accordance with Rule 814 on the Trading Day of acceptance by theClearing House of the Exercise Notice.

© Copyright Chicago Mercantile Exchange, Inc. All rights reserved.

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