Use

An OTC security option gives you the right to purchase or sell a security. To enable you to transfer the security to the option as an underlying instrument, you must enter a security class in the option’s basic data.

Activities

When you create an option in the system, you simply enter the ID number plus the nominal amount and the reference price. For the option itself, you then have to enter the exercise date, premium, exercise type (American or European) and the settlement.

When you exercise an option physically, the system detaches the option from the underlying transaction (the security purchase or sale). You execute the underlying transaction according to the status transitions you defined.

For more information, see Warrants .