Listed Options Life Cycle
Chapter 2 introduced the listed option products and various contract types, and Chapter 10 explained the derivatives life cycle of listed contracts and associated standard procedures. The present chapter focuses on the specifics of the listed option contract life cycle that are peculiar to listed options. This chapter serves as an extension of Chapter 10, which introduced all the terminology and procedures deployed in this chapter. Because this chapter refers exclusively to listed options, the terms option and listed option are used synonymously in it, unless stated otherwise.
Recall that an option derivatives contract is an agreement giving the buyer a right to execute the transaction with a seller on ...