The OBX index is Oslo Stock Exchange's tradable index and consists of 25 Norwegian stocks chosen every six months based on turnover. This means that OBX index options are an excellent instrument for quickly and efficiently increasing or decreasing exposure to the Norwegian market.
The following is a brief description of options on OBX index. For a detailed contract specification, please consult chapter four in the Rules and Regulations for OMX Derivatives Markets, which is available here on the website.
Download a printer friendly product description here: Options on OBX
Facts
Type of contract:
European call and put options contracts with cash settlement.
Contract base:
The Norwegian OBX share index.
Index provider:
Oslo Børs.
Contract size:
Index value * NOK 100.
Series designation:
Indicate the designation for the contract base, expiration year, exercise price, expiration month and option type.
Exercise price:
The index value (exercise index) contained in the series designation multiplied by 100 Norwegian Kronor. Re-calculation may occur in certain cases (see Re-calculation).
Premium:
Agreed upon by the parties. Shall be expressed in Norwegian Kronor and cover the price for one one-hundredth of an options contract.
Premium settlement day:
The third Norwegian bank day following registration.
Expiration day:
The third Thursday of the expiration month of the expiration year, or where such day is not a Norwegian bank day the preceding bank day.
Last trading day:
The expiration day at the close of the electronic trading system for the series in question.
Cash settlement:
A cash settlement of the contracts is made on the expiration day based on the index fix value. The fix is comprised of a weighted OBX index (average index) regarding the expiration day. Payment of settlement occurs on the fourth Norwegian bank day following the expiration day.
Setting-off:
Setting-off may occur any time during the term.
Listing of new expiration month:
Five call options series and five put options series, with different exercise prices and a lifetime of three months, are listed every three months from the first Norwegian bank day following the expiration day of the previous options series.
Re-calculation:
In the event of a planned index change other than that which is set forth in the terms for the index (deflation of the index or other similar event), a re-calculation of the exercise price may occur with regards to the planned index change.
All information provided herein shall be deemed to be general information and under no circumstances constitute any recommendation regarding investments. The reader shall be personally liable for risks associated with any investment based on the information provided in this document. Notwithstanding that the accuracy of the information provided herein has been verified, NASDAQ OMX, or any other subsidiary of NASDAQ OMX, assumes no liability with respect to the accuracy or use of such information. Trading in options and other derivatives instruments may involve risks, advice therefore with your bank or broker before executing a trade. For current rules for trading and clearing of options and futures please see Rules and Regulations for OMX Derivatives Markets.
