Option - The right, but not the obligation, to buy or sell an underlying futures contract at a specific price during a specified time period. (Can also mean the price of cash grain or oilseed that is equal to the underlying futures price. Example: The cash price for soybeans in the first half of July is 8.00 and at the same time, July futures are8.00.) See also "Call Option," "Put Option" and "Strike."
Rainy Day Trader
Glossary of Trading Terms
Basics Of Options Trading
Thursday, July 12, 2007
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