Soybean Calendar Spread Options
Soybean Calendar Spread Options Meaning:
In commodity market terminology, Soybean Calendar Spread Options refers to options on the price differential or spread between two Soybean futures contract months, instead of on the Soybean futures price itself. Soybeans are an oilseed legume originally from East Asia that has been used for centuries as a protein source both for humans and animals. Soybeans are also used to make oil and meal.
In commodity market terminology, Soybean Calendar Spread Options refers to options on the price differential or spread between two Soybean futures contract months, instead of on the Soybean futures price itself. Soybeans are an oilseed legume originally from East Asia that has been used for centuries as a protein source both for humans and animals. Soybeans are also used to make oil and meal.
Contracts for Soybean Calendar Spread Options are traded on the Chicago Board of Trade and the CME Group's Globex electronic trading platform. Each contract consists of one long Soybean futures contract (of a particular month) and one short Soybean futures contract (of a different specified month), each consisting of 5,000 Bushels. Prices are quoted in U.S. Dollars with a minimum fluctuation of 1/8 cent per bushel or $6.25 per contract.