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Futures Option
> Option Contract Agreements for Trading


Option Contract

An options contract is a derivative (deals with an underlying security) that gives the holder the right to exercise the contract and the seller
the obligation to fulfill the contract. [see puts and calls, put options,
call options
]

Generally the option contract normally spells out:

  • The option type; put or call
  • The strike/exercise price and date
    (depending on American or European style of option;
    see American, European)
  • The quantity of the security along with multiplier



 
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