From the March 01, 2009 issue of Futures Magazine • Subscribe!

Inside the numbers

Options on Kospi 200 stock index futures launched in 1997, long before the CME started trading E-mini S&P 500 contracts. Initially dismissed for their small size, the contracts have been praised as the first options contract for the working man.

Kospi contracts (including the Kospi 200 futures available as of September on Globex) are denominated in Korean won, which is currently trading at 1,486 to the dollar, so 1,000 won are worth about 68 cents.

The multiplier for contract size is 500,000 for futures and 100,000 for options, meaning you multiply the value of the Kospi 200 Index by 500,000 Korean won to get the underlying value of a futures contract, and by 100,000 Korean won to get the underlying value of an options contract.

The minimum tick size is 0.05 points on both futures and options, which translates into 25,000 won on futures ($17) and 5,000 won ($3.41) on options.

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