Contract Specifications (Gold Options)

Date of Listing

May 17, 2004

Type of Trade

Call Options on Gold Futures
Put Options on Gold Futures

Minimum Price Fluctuation

JPY 1 per gram

Contract Unit

1 kg / contract

Trading Hours

Morning Session: 9:15 a.m. to 11:00 a.m.; Afternoon Session: 12:45 p.m. to 5:30 p.m.

Trading Method

Computerized continuous trading

Contract Months

All even months within 6 months (on the day when a New Contract Month is generated, there will be 3 even months starting from the next even month after the month which the said day belongs to)

Last Trading Day

The last business day of the month preceding to the underlying futures delivery month

First Trading Day of New Contract Month

The business day following the First Trading Day of a New Contract Month of the underlying

Strike Price Interval

JPY 50

Listing of Strike Prices

At the commencement of trading, five strikes shall be listed (one strike price nearest to the previous day's settlement price of the underlying asset, plus two above and two below.)
New strikes will be added to maintain two strike prices above and below the strike price nearest to the previous day's settlement price of the underlying asset for the current contract month, until the fourth business day prior to the last trading day.
Strikes may be delisted when there are more than 20 strikes in one contract months for put and call option respectively.

Exercise period

The options buyers may exercise their options at any time from the First Trading Day of a New Contract Month to the Last Trading Day. (American type)

Limitation on Exercise

No limitation. Exchange may require statement of reason when options are exercised out-of-the Money beyond a certain level.

Daily Price Fluctuation Limit

Same as the underlying

*	See Margin and Price Limit for the margins currently applied.

Maintenance Amount for Initial Clearing Margins (sellers only; per contract)

50% of the underlying

*	See Margin and Price Limit for the margins currently applied.

Extraordinary Clearing Margin

	When the underlying's final contract prices for three or more contract months (excluding contract months with no applicable price limit) have reached the price limit in the same direction for two consecutive business days, deposit of an Extraordinary Cleairng Margin will be requested for new positions in all contract months from the following business day, until the final contract price for all contract months (excluding contract months with no applicalbe price limit) stop reaching the price limits for three consecutive business days.
	The deposit amount shall be 50% of the underlying's Extraordinary Clearing Margin.
	Apart from the conditions specified above, if the Exchange deems it necessary for market management purposes, Extraordinary Clearing Margins may be separately imposed.

Customer Position Limit

5,000 contracts (long/short call, long/short put each)

Settlement Price

Theoretical price in principle

Assignment of exercise

TOCOM proportionally assigns exercised option contracts to short positions based on their three different categories: proprietary positions, general customer positions, and member customer positions. Then, one lot is allocated to each selling members in the order determined randomly until all exercised options are assigned.
Within a broker member, allocation will be made from the oldest outstanding positions with regard to their customer positions (general and member customer positions).