1. Why did the Chicago Board of Trade decide to launch CBOT^® 5000 ounce Silver options?
The decision to launch CBOT 5000 ounce Silver options was in direct response to customer demand. The success of the CBOT precious metals complex makes the 5000 ounce Silver option a natural complement, providing additional trading flexibility for CBOT customers.

2. What platform are CBOT Silver options traded on?
As with all CBOT precious metals contracts, the 5000 ounce Silver option is traded exclusively on e-cbot^®, the Chicago Board of Trade's premier electronic platform.

3. Are there Market Makers in CBOT 5000 ounce Silver options?
Yes, there are designated Electronic Market Makers committed to making two-sided markets.

4. What is the contract size of a CBOT Silver option contract?
One underlying CBOT Silver futures contract of 5000 troy ounces.

5. What is American style exercise and why did the CBOT designate their 5000 ounce Silver option contract as American style exercise?
American style exercise refers to options that can be exercised on any business day during the life of the option. The other alternative, European style exercise, can only be exercised at expiration. The CBOT selected American style exercise because it is the most common type used in the futures industry and it provides additional trading flexibility and opportunity.

6. What is the difference between a CBOT Silver call option and a CBOT Silver put option?
A call option conveys the right to buy (go long) the underlying 5000 ounce Silver futures contract and a put option conveys the right to sell (go short) the underlying 5000 ounce Silver futures contract.

7. Who has the right to exercise a CBOT Silver option?
Only the option buyer can exercise the rights specified in either the call or put option. Note that all options which are in-the-money at expiration will be automatically exercised, unless the option buyer notifies their clearing firm otherwise.

8. What is a CBOT 100 ounce Silver serial option contract?
Serial options are short term options that trade for about 60 days. They are listed in months that are not included in the standard CBOT Silver futures contract cycle. They include Jan, Feb, Apr, Jun, Aug and Oct. Exercising a serial option will result in a position in the nearest of the standard five contract months following the serial month. Note that only one serial option will be listed at any time. Upon expiration of a serial option, the next serial month will be listed.

9. Are 5000 ounce Silver options exercised into physical Silver?
No. CBOT 5000 ounce Silver options are exercised into a 5000 ounce Silver futures contract position. Standard month Silver options are exercised into an underlying futures position of the same month. For example, December options are exercised into December futures. For serial option contracts traded in January, February, April, June, August, October or November, the underlying futures contract will be the nearest March, May, July, September, or December futures contract, respectively. For example, January Silver serial options would be exercised into March Silver futures.

10. If you exercise a CBOT 5000 ounce Silver option contract, can that eventually lead to delivery of physical Silver?
Yes. Although the exercise of an option position will result in a futures position, holding the resulting futures position until the delivery month may result in an obligation to take or make physical delivery.

11. Why do options expire in the month prior to the underlying futures contract month?
If exercise occurs on option expiration day, there is still time to offset the assigned underlying futures position prior to the beginning of the futures delivery process.

12. What is Option Premium?
It is the current value, price or cost of the option rights. The option buyer pays the premium and the option seller collects the premium. The option premium is discovered through trading on the electronic platform.

13. What are the position limits for CBOT 5000 ounce Silver options?
Option contract positions are combined with futures positions when determining position limits for CBOT products. Information on how options positions are treated for purposes of determining position limits, current position limits and reportable levels is located in section 425.01 and Appendix 4c in the CBOT Rules & Regulations.

14. What are the margin requirements for CBOT 5000 ounce Silver options?
Buyers of CBOT 5000 ounce Silver options do not have margin requirements. Sellers of CBOT 5000 ounce Silver options will have margin requirements determined by the Chicago Board of Trade. The appropriate margin levels are based on price volatility, price levels and other factors. Current marginsarepostedatwww.cbot.com>Clearing>Margins.

15. What are the CBOT Exchange Transaction fees for CBOT 5000 ounce Silver options?
CBOT transaction fees are based on the trader's association with the Exchange. Current transaction feesarepostedatwww.cbot.com>Clearing>Exchange Transaction and Clearing Fees.

16. Who do I contact if I want to begin trading CBOT 5000 ounce Silver options or any other CBOT precious metals contract?
Contact your commodity broker. If you are new to trading futures and are looking for a broker, you may wanttorefertowww.cbot.com>Education>Find a Broker.

17. How do you get connected to the Chicago Board of Trade electronic platform?
Individual traders can access the e-cbot platform through their commodity broker's online interface. Firms needing a direct connectivity can call CBOT Functional Member Readiness at 312-341-7955 or send an email to fmr@cbot.com. Additional information, including the direct connection package, islocatedontheCBOTwebsiteatwww.cbot.com>AboutCBOT>ElectronicTrading>Get Connected.