Seasonal
contracts pay a fixed amount -- $10,000 -- to the buyer if the combined total of the CME-Carvill
Hurricane Index values for all hurricanes that make landfall within the specific geographical
region equals or exceeds the strike price. Seasonal maximum contracts pay the fixed amount if
the largest value for a hurricane that makes landfall within the region equals or exceeds the
strike price. Note that
only calls are listed, and that these are
American-style options: they can be exercised at any time once they have gone
into the money. Option prices range from 0.01 to 100.00, and reflect
the market's estimation of the probability of the option going into the money. Processed in the clearing system as an option on a
non-tradeable underlying synthetic future.
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