QM / CL fungibility question

Discussion in 'Options' started by J-Trade, May 20, 2005.

  1. J-Trade

    J-Trade

    If I am short 1 x CL call option and long 2 x QM, is this fungible (if that is the correct use of that word) at expiration ? That is, if I go long 2 x QM on an electronic trading platform to cover a breach of my strike price, will the position be automatically cancelled out, or do I necessarily have to buy 1 x CL futures ?

    TIA,

    J.
     
  2. Xenia

    Xenia

    QM: cash settlement
    CL: physical delivery

    I do not think that it will work.