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Open in new window Grain Price Options Basics

Don Hofstrand ( March, 2022 )

Summary

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.


Details

Organization Iowa State University Extension
Publisher Iowa State University
Publication Date March, 2022
Publication Views 1316
Material Type Written Material

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