1.

What Is An Option On A Futures Contract?

Answer»

A futures option gives the right (but does not impose an obligation) to buy or sell a futures contract at a certain PRICE for a limited TIME. Only the seller of the option is OBLIGATED to PERFORM. There are two types of options: calls and PUTS.

A futures option gives the right (but does not impose an obligation) to buy or sell a futures contract at a certain price for a limited time. Only the seller of the option is obligated to perform. There are two types of options: calls and puts.



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