USD/YEN Bungees (limited risk futures) are cash-settled contracts with a variable payout that allow traders to take a position on the expected direction of the USD/YEN exchange rate. Bungees enable traders to speculate on where the the USD/YEN exchange rate will be on the designated expiration date, while limiting their risk exposure to extreme volatile price changes.

Contract Type
Bungee (limited risk future) - A cash-settled contract with a variable payout structure and maximum contract value ranging from $100 to $500.

Underlying
The underlying is the exchange rate for U.S. dollars to Japanese Yen (USD/YEN) in the spot currency market.

Contract Value
$200; The maximum contract payout value.

Tick Value
$1; The dollar value payout per tick movement in the underlying market.

Tick Size
0.01; The incremental price movement in the underlying that corresponds to the specified tick value.

Minimum Price Increment
0.01; All prices must be entered in increments equivalent to the contract's tick size of 0.01, starting from the specified floor (lower level) to the specified cap (upper level).

Bungee Range
2.00; The values between which payout for the Bungee contract is determined, defined by a floor and a cap.

Trading Hours
Regular session trading hours are 8:00am to 5:00pm ET, Monday through Thursday and 8:00am to 4:00pm 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, USD/YEN bungee contracts close at 3pm ET. For additional information, please refer to the Trading Hours Table.

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 USD/YEN bungee contracts, 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 USD/YEN bungee contracts, the settlement date is usually the same as the expiration date.

Expiration Value
The USD/YEN exchange rate is calculated by HedgeStreet using a proprietary algorithm that takes a sampling of data points obtained from the USD/YEN spot market. HedgeStreet calculates the expiration value by taking the last 25 midpoints¹ in the spot currency market just prior to the close of trading in the designated HedgeStreet binary option contract and removes the highest 5 and the lowest 5 midpoints, using the remaining 15 midpoints to calculate the expiration value. The calculation used is a simple average of all 15 USD/YEN midpoints.

For a detailed summary of the Source Agencies providing the expiration values for all Binaries, please refer to the Settlement Source Table.

Settlement Value
The settlement value, a cash payout, ranges from $0 to $200, depending on the final expiration value of USD/YEN relative to the Bungee's range.

Speculative Position Limits
There is no aggregate position limit.

Underlying Data Feed
USD/YEN underlying price quotes are received from Reuters. Data is displayed in real-time if a member is logged in and is 30 minutes delayed if a member is logged out. The data is viewable in the Trader Center and under the "Underlying Price" column on the Quotes & Charts page. The data shown represents the midpoint¹ between the Bid and Ask values obtained from the spot foreign currency market.

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3PM USD/YEN 100.00 to 102.00 (W) Bungee (08 May 09)
This Bungee contract allows traders to take a position on movements in the USD/YEN exchange within the range of 100.00 to 102.00, as calculated by HedgeStreet on May 8, 2009.

Bungee Name Format
[LTD CLOSE TIME][ASSET][RANGE][DURATION][LAST TRADING DAY]

LTD Close Time
"3PM" - The time on the last trading date that the contract will stop trading.

Asset
"USD/YEN" - The underlying for the bungee contract.

Range
"100.00 to 102.00" - specifies the values between which payout is determined. The floor (lower level) is 100.00, and the cap (upper level) is 102.00. Traders receive $1 per 0.01 movement in the underlying USD/YEN exchange rate within this range.

Duration
"(W)" - Weekly duration.

Last Trading Day
"(08 May 09)" - The date the contract will stop trading.

Positions
Buy if you think the USD/YEN exchange rate will increase as of May 8, 2009.

Sell if you think the USD/YEN exchange rate will decrease as of May 8, 2009.

Settlement
Final payout is based on the expiration value of the USD/YEN exchange rate, relative to the Bungee's range. For buyers, the final payout is as follows:

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**ANY DATA DISPLAYED HEREIN IS PROVIDED ON AN AS IS, AS AVAILABLE BASIS. HEDGESTREET HEREBY DISCLAIMS ANY AND ALL WARRANTIES, UNDERTAKINGS AND REPRESENTATIONS, EXPRESS AND IMPLIED, IN REGARD TO SUCH DATA AND THE USE AND INABILITY TO USE SUCH DATA. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, HEDGESTREET DOES NOT GUARANTEE THE ACCURACY, COMPLETENESS, CURRENCY, VALIDITY OR TIMELINESS OF THE DATA. ALL USES OF SUCH DATA AND ANY RELIANCE THEREON ARE AT THE USER'S SOLE RISK.

In the event that any market irregularities are declared by HedgeStreet, trading in this 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 offerings frequently and at its sole discretion. In some cases, new offerings may affect the demand (and thus in some cases the liquidity and/or trading price) for existing, related contracts. Traders should consider this dynamic aspect of HedgeStreet when making trading decisions.

¹ A midpoint is calculated by adding the bid and ask price together and dividing that number by 2. For example, if the bid price is 1.3400 and the ask price is 1.3402, the prices are added together (totaling 2.6802) and then divided by 2, equaling a midpoint of 1.3401. If the spread between a particular bid price and ask price is deemed too wide (greater than five 5 pips), those prices will not be used to calculate a midpoint and will not be included as part of the 25 midpoint values.