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Futures Terms |
| Browse our glossary of terms by using the Alphabet below. You may also search the glossary by using the search box in the right column. | |
| Option | The buyer of an option has the right, but not the obligation, to undertake an action on an underlying asset. The right to buy is a "call" option, while the right to sell is a "put" option. A right exercisable only on the expiration date is "European"-style, while a right exercisable on or before the expiration date is "American"-style. The pre-determined price at which exercise occurs is the strike price. |