how wild card options work
u s treasury bond futures contracts have been traded on the chicago board of trade cbot commodity exchange since 1977 1 under the rules of the cbot trading in the treasury futures market is terminated at 2 00 pm but traders that have sold treasury futures are not required to settle their contracts until 8 00 pm 2the amount that the short seller must pay in order to compensate the holder of the futures contract known as the contract s invoice price is set as of 2 00 pm because of the wild card option however treasury futures sellers have the option of waiting for up to six hours during which time they might benefit from favorable price movements during after hours trading 