4.2.1.3.1.2. Delivery and Margin Requirements of Futures Options
When a futures option is exercised, settlement involves the delivery of a futures contract to both the holder and writer of the option. If the holder of the exercised option has a long call, she will receive a long futures contract. The assigned party will receive a short futures contract. The holder of a long put will receive a short futures contract upon exercise, while the assigned party will receive a long futures contract.
The futures contract is exercised at the strike price of the option. It will be marked to market daily beginning on the trading day that the clearinghouse accepts the exercise notice. If the holder of the exercised option has a long call, she will receive a long futures contract. The assigned party will receive a short futures contract. The holder of a long put will receive a short futures contract upon exercise, while the assigned party will receive a long fu