Traded Average Price Options (TAPOs) are exchange traded and cleared contracts which settle financially based on the average of the daily LME Official Settlement Prices for the relevant month.
|Underlying metal||P1020A high grade primary aluminium|
|Lot size||25 tonnes|
|Contract months||Monthly out to 63 months|
|Underlying contract||LME Aluminium futures - the average of the cash prompts for each business day of the contract month|
|Price quotation||US dollars per tonne|
|Clearable currencies||US dollars|
|Trading deadlines||The business day preceding the declaration day of the relevant prompt month:
• Last trading time - by 18.00
• Last matching and registration - by 18.15
|Expiry date/time||Automatic declaration of in-the-money TAPOs at 15.00 on the last business day of the TAPO month
|Minimum price fluctuation (tick size)||$0.01 per tonne|
|Strike price interval||$1|
|Exercise of option||LME Clear auto exercise TAPOs. Exercise will result in two futures contracts, one at the strike price and the other at the Monthly Average Settlement Price (MASP). This has the same economic effect as cash settlement two business days after the last trading day of the contract month.
|Trading venues||Ring, inter-office telephone and LMEselect (as a delta hedged option only)|