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An option is the right, but not the obligation, to buy or sell a futures contract. The buyer of an option acquires this right. The option seller(writer) must take the opposite side of the option buyer’s futures position. Option contracts are traded in a similar manner as their underlying futures contracts. All buying and selling occurs by open outcry of competitive bids and offers in the trading pit.
Organization | Iowa State University Extension |
Publisher | Iowa State University |
Publication Date | March, 2022 |
Publication Views | 1316 |
Material Type | Written Material |