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Home        Knowledge Base        Futures Trading Glossary        Option Contract

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Option Contract

Search definitions        Search   Option Contract A contract which gives the buyer the right, but not the obligation, to buy or sell a specified quantity of a commodity or Futures Contract at a specific price within a specified period of time. The seller of the Option has the obligation to sell the commodity or Futures Contract or buy it from the Option buyer at the Exercise price if the Option is exercised. See also Call Option and Put Option. Posted by  Privatebanking.com     Back     Print     Email

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