Question

Which commodity exchange platform has launched India's first options contract on copper futures?

• A. Multi Commodity Exchange of India
• B. National Stock Exchange of India
• C. Indian Commodity Exchange
• D. Bombay Stock Exchange

Answer 1

The correct option is A Multi Commodity Exchange of India

The Multi Commodity Exchange of India Ltd. (MCX) has launched the Indias first options contract on copper futures on May 21, 2018. The option contract will provide physical market participants an additional instrument to hedge their risk.

Currently, June, August and November 2018 option contracts are available for trading, with one MCX copper futures contract (1 MT) as the underlying. The exercised positions of the options contract post expiry shall devolve into the respective underlying future positions.

This new options contract provides the optimal tool to hedge and mitigate price risk in copper for the stakeholders. MCX copper options are available to trade from 10:00am-11:30pm/11:55pm on weekdays. In order to encourage active participation in the market the exchange is not levying any transaction fees on all the commodity options contracts till September 30, 2018.