Traded Average Price Options (TAPOs) give the metal community a flexible way of hedging against fluctuations in the Monthly Average Settlement Price (MASP).
This is particularly useful because a large proportion of physical contracts are negotiated basis the MASP.
Like traded options, a buyer of a TAPO has the right, but not the obligation, to buy or sell at a price agreed today. The settlement price is calculated based on the average settlement price of the month.
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TAPOs (Traded Average Price Options)
Asian-style monthly average-price options
up to 63 months