Call and Put Options for EMIX.

[ed@cazalet.com]

Call and Put Options for EMIX.

A standard transaction for a commodity is a put or call option.

A call (or put) option for energy will have the same EMIX elements as the underlying energy commodity with two additional elements:

1. The strike price that the buyer (seller) will pay for energy delivered on demand.

2. The expiration time, which could be expressed as an time span before the deliver interval. For example, the option for energy for a given hour could expire 10 min before the hour begins.

I suggest we make this a part of our EMIX message - probably optional.