Forsa Option Contract Specifications

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Forsa Option Contract Specifications


Underlying stock: Shortlist of 57 stocks traded on Boursa Kuwait
Option symbol: Each option has a unique ISIN number by which it is identified (e.g. KW0101000025)
Contract size: Contracts are in multiples of 1000 with a minimum size of 1000 or a maximum of 100,000 shares of the underlying stock. The contract size may be adjusted for splits, rights, bonus issues and other corporate action events.
Type: Only call options are traded at Boursa Kuwait with Put options to be launched in the near future.
Strike (Exercise) price: One at-the-money and two out-of-the-money strike prices are initially listed with a difference of two price units (ticks). The strike price will be adjusted for corporate actions.
Expiration cycle: Forsa Option contracts have a minimum term of 1 month and a maximum term of 12 months with March, June, September and December as the fixed expiration months. One month option contracts are issued every month.
3 months (March), 6 months (June), 9 months (September) and 12 months (December) contracts are issued only once on the first trading day of the year.
Expiration day: Last Thursday of the month. This may change due to public holidays.
Option style: American (Exercisable on or before the expiration date)
Settlement: Physical settlement by delivery of the underlying shares and cash settlement at the Bid price quoted which is always greater than or equal to the intrinsic value of the option.
Settlement of exercise: The settlement cycle will be determined by the Kuwait Clearing Company (KCC)
Trading Hours: 12.55 PM to 1.15 PM (Kuwait Time)