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FEE SCHEDULE DISCLOSURE
The commission & fees to be charged in connection with the purchase of each commodity option or futures contract will be ninety nine dollars ($99.00) unless the client requests Premium Full Service in which case the commission & fees will be one hundred and ninety five dollars ($195.00) round-turn. Commodity option clients will realize a profit only if the option is sold or exercised at a time when the premium received at the time of sale, or upon exercise, will exceed the premium paid plus commission and fees.
The commission and fees payable to Trendex Commodity Corporation ("Trendex") thereunder has been arbitrarily determined. The commissions and fees for similar services vary within the futures industry and the commissions and fees payable to Trendex may exceed commissions and fees that Trendex charges to other clients.
In addition to the commission & fees described above, National Futures Association fees totaling four cents ($.04) round-turn are charged on each option and future purchased for your account, and will be collected by the Futures Commission Merchant on the date of the transaction.
A person contemplating purchasing a deep-out-of-the-money option (that is, a call with a strike price significantly above, or a put option with a strike price significantly below the current price of the underlying futures contract) should be aware that the chance of such an option becoming profitable is ordinarily remote. On the other hand, a potential grantor of a deep-out-of-the-money option should be aware that such options normally provide small premiums while exposing the grantor to all the potential losses described in the Options on Futures Risk Disclosure Statement.
I hereby acknowledge that I have received the "Options on Futures Risk Disclosure Statement" and the Trendex Commodity Corporation Fee Schedule Disclosure. I have read these documents carefully and understand the concepts of trading options on futures contracts and the disclosures contained in these documents.
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