Crude Oil Binary options are cash-settled options with an all-or-nothing payout that allow traders to take a position on the expected direction of the price per barrel of Crude Oil (in U.S. dollars). By trading these binary options, traders can speculate on where the price of Crude Oil (per barrel) will be at 10:00am, 12:00pm, 2:00pm or 2:30pm ET on the designated expiration date.

Options Type
Binary Option - A European-style option contract that is cash settled on the expiration date with an all-or-nothing payout.

Underlying
The underlying is the price per barrel of Crude Oil (in U.S. dollars) obtained from the WTI Light, Sweet, Crude Oil Futures contracts traded on the New York Mercantile Exchange (NYMEX^®1).

Price Quotation
U.S. dollars and cents.

Minimum Tick Size
$0.25 per contract. All prices must be entered in increments of $0.25, starting from the minimum payout value of $0 to the maximum payout value of $100.

Trading Hours
Regular session trading hours are 8:00am to 5:00pm ET, Monday through Thursday and 8:00am to 3:00pm ET on Friday. Evening session trading hours are from 6:00pm to 9:00pm ET Monday through Thursday. On the contract's specified last trading day, Crude Oil binary contracts close at 10:00am, 12:00pm or 2:00pm for intraday contracts or 2:30pm ET for other contracts. For additional information, please refer to the Trading Hours Table.

Trading Months
The futures contract months that will be used for the underlying will be taken from all twelve NYMEX Crude Oil Futures Contract delivery months (CFC Delivery Month): January, February, March, April, May, June, July, August, September, October, November, or December. Please refer to the Settlement Source Table for a schedule of the dates associated with the specific CFC Delivery Months that will be used as the underlying.

Last Trading Day
Trading in the contract will stop as of the date listed in the contract's name and in the "At a Glance" table (right).

Expiration Date
The date on which the expiration value for the contract is calculated or released. For Crude Oil binary options, the expiration date is usually the same day as the last trading day, which is listed in the "At a Glance" table (right).

Settlement Date and Time
The date on which the final settlement value is determined and cash payouts are made to the appropriate member accounts. Contracts are settled on the specified settlement date, which is listed in the "At a Glance" table (right). Settlement generally occurs within an hour of a contract's closing time (the closing time is displayed in the name of the contract). For Crude Oil binary options, the settlement date is usually the same as the expiration date.

Expiration Value
The price of Crude Oil (per barrel) is calculated by HedgeStreet by using a proprietary algorithm that takes a sampling of data points obtained from the relevant Crude Oil futures contract currently trading on the NYMEX. HedgeStreet calculates the expiration value by taking the last 25 trade prices in the designated NYMEX Crude Oil futures contract just prior to the close of trading in the designated HedgeStreet binary option contract and removes the highest 5 and the lowest 5 trade prices, using the remaining 15 NYMEX Crude Oil futures trade prices to calculate the expiration value. The calculation used is a simple average of all 15 Crude Oil futures contract trade prices.

Settlement Value
The settlement value, a cash payout, is either $0 or $100.

Speculative Position Limits
The aggregate position limit is 2,500 contracts.

Strike Price Intervals
Daily duration: $0.50 increments for all strike prices; Weekly duration: $2.00 increments for all strike prices.

Underlying Data Feed
Crude Oil underlying price quotes are displayed by Barchart with a 30 minute delay in the Trader Center and on the Quotes and Charts page.

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2:30PM Dec Crude Oil > $90.00 (31 Oct 08)
This binary options contract allows traders to take a position on whether the price of Crude Oil, as calculated by HedgeStreet (based on the NYMEX December 2008 Crude Oil Futures contract), will be greater than $90.00 at 2:30pm ET on October 31, 2008.

Binary Name Format
[LTD CLOSE TIME][UNDERLYING FUTURES][ASSET][STRIKE OPERATOR][STRIKE PRICE][LAST TRADING DAY]

LTD Close Time
"2:30PM" - The time on the last trading date that the contract will stop trading.

Underlying Futures
"Dec" - The Crude Oil futures contract month on which the option is based, where the year is the nearest delivery year available for the futures month listed. In this case, the underlying futures contract month would be December 2008.

Asset
"Crude Oil" - The underlying for the binary option.

Strike Operators
">" - The payout is based on whether the price of Crude Oil calculated by HedgeStreet on the settlement date is greater than (>) a specified level. (For "<=", the payout is based on whether the price of Crude Oil calculated by HedgeStreet on the settlement date is less than or equal to (<=) a specified level.)

Strike Price
"$90.00" - The price level against which the final expiration value of Crude Oil is compared to determine the settlement value ($0 or $100) for the contract.

Last Trading Day
"(31 Oct 08)" - The date the contract will stop trading.

Positions
For contracts with a ">" (greater than) strike operator, buy if you think the price of Crude Oil calculated by HedgeStreet on October 31, 2008 will be greater than $90.00. (For "<=", buy if you think the price of Crude Oil calculated by HedgeStreet on October 31, 2008 will be less than or equal to $90.00.)

For contracts with a ">" (greater than) strike operator, sell if you think the price of Crude Oil calculated by HedgeStreet on October 31, 2008 will be less than or equal to $90.00. (For "<=", sell if you think the price of Gold calculated by HedgeStreet on October 31, 2008 will be greater than $90.00.)

Settlement
For contracts with a ">" (greater than) strike operator, buyers receive a cash payout of $100 per contract if the price of Crude Oil calculated by HedgeStreet is greater than $90.00 on October 31, 2008. (For "<=", buyers receive a cash payout of $100 per contract if the price of Crude Oil calculated by HedgeStreet is less than or equal to $90.00 on October 31, 2008.)

For contracts with a ">" (greater than) strike operator, sellers receive a cash payout of $100 per contract if the price of Crude Oil calculated by HedgeStreet is less than or equal to $90.00 on October 31, 2008. (For "<=", sellers receive a cash payout of $100 per contract if the price of Crude Oil calculated by HedgeStreet is greater than $90.00 on October 31, 2008.)

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**The data displayed herein represents the expiration value for Crude Oil as calculated by HedgeStreet. The data is being provided for informational purposes only and should not be the sole information relied upon in making investment decisions. HedgeStreet does not guarantee or make any representation as to their accuracy and completeness.

In the event that any market irregularities are declared by HedgeStreet, trading in this Binary market may be halted. If it is determined by HedgeStreet that the market must be halted for any other reason, an explanation will be posted on HedgeStreet's website within a reasonable amount of time but no later than 24 hours after the initiation of the halt. To provide as extensive and relevant a market as possible, HedgeStreet may add new Binary offerings frequently and at its sole discretion. In some cases, new Binary offerings may affect the demand (and thus in some cases the liquidity and/or trading price) for existing, related Binaries. Traders should consider this dynamic aspect of HedgeStreet when making trading decisions.

¹ NYMEX^® is a registered service mark of the New York Mercantile Exchange, Inc. HedgeStreet, Inc. is not affiliated with the New York Mercantile Exchange, Inc. and neither the New York Mercantile Exchange, nor its affiliates, sponsor or endorse HedgeStreet, Inc. in any way.