The underlying instrument for each Nikkei options contract is one Nikkei futures contract. An options contract is dollar-valued at $5.00 x the premium, or price, of the option. For example, if a March Nikkei 19000 call has a premium of $1,050, the dollar value of that option would be $5,250 ($5.00 x $1,050). Strike, or exercise, prices for Nikkei options are in increments Of 500 points (i.e., 19000,19500, 200()O). Like the futures, Nikkei options have a tick size of 5 index points, o, per contract. There is a wide range of strike prices for both put and call options, so you can precisely tailor a strategy according to your risk/reward outlook, with or without taking a futures position,

(Please note that, although on some services the Nikkei futures may be displayed out to two decimal places, these places are always zeros. The cash Nikkei Average, on the other hand, may be displayed with non zero figures.)

Quarterly-cycle options contracts are cash-settled the same way as futures. The last day of trading is the same as that of the underlying futures. Non-quarterly or serial, options (i.e., Jan, Feb, Apr, etc.) stop trading on the third Friday of the contract month and are settled to the settlement price of the nearest futures contract. For example, if you hold a Nikkei option with an April expiration, you may exercise the option and establish an open position in the June futures. The futures position is taken at the strike price of the option, multiplied by $5.W.