Step 1: In the Position Name text box, type the appropriate name of your commodity option instrument.
Step 2: In the Comment text box, type any additional notes about the transaction.
Step 3: In the Counterparty menu, type in the Counterparty with whom you are entering the commodity option agreement. You can also click from the list if a counterparty entry already exists.
Step 4: In the Seniority Level menu, click the appropriate Seniority Level, or order of commodity option payments.
Step 5: In the Commodity menu, click the commodity that will form the underlying of your option instrument.
Step 6: In the Settlement Date menu, click through the online calendar to set the date by which the commodity option must be settled. This is a required command.
Step 7: In the Strike Rate menu, type the strike/exercise rate of the commodity option. The text box automatically extends your entry to six decimal places.
Step 8: In the Contract Size text box, type the dollar amount in your position's currency that represents the contract size of the commodity option. This is a required command.
Step 9: In the Call/Put menu, click to specify whether your option is a call or a put.
Step 10: In the Business Day Rule menu, click the rule being observed for the commodity option agreement. This is a required command.
Step 11: In the Futures Interpolation menu, click the day rule you will use to interpolate the futures prices of the contract.
Step 12: In the Long/Short menu, click to define whether you are a long or short on the contract. This is a required command.
Step 13: Click the Use Flat Volatility check box, then type the volatility value for the underlying. The text box automatically extends your entry to six decimal places.
Step 14: In the Option Type menu, click the type you are searching for.
Step 15: Use this menu if you have chosen an Asian option type in step 13. In the Asian Start Date menu click through the online calendar to set the start date of the Asian option. In the Asian End Date menu, click through the online calendar to set the end date of the Asian option.
Step 16: In the Term menu, click through the online calendar to set the length of the contract.
Step 17: In the Average So Far text box, type in the contract's average settlement price up to the current date, if the contract's averaging period has started.