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(Created page with "An option contract to sell a futures contract at an agreed price and time at any time until the expiration of the option. A put option is purchased to protect against a f...")
 
 
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An [[option contract]] to sell a [[futures contract]] at an agreed price and time at any time until the expiration of the option. A put option is purchased to protect against a fall in price. The buyer pays a premium to the seller of this option. The buyer has the right to sell the futures contract or enter into a [[short]] position in the futures market if the option is exercised. See [[call option]].  
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An [[options contract]] to sell a [[futures contract]] at an agreed price and time at any time until the expiration of the option. A put option is purchased to protect against a fall in price. The buyer pays a premium to the seller of this option. The buyer has the right to sell the futures contract or enter into a [[short]] position in the futures market if the option is exercised. See [[call option]].  
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[[Category: Agriculture]]
 
[[Category: Agriculture]]

Latest revision as of 16:10, 18 October 2019

An options contract to sell a futures contract at an agreed price and time at any time until the expiration of the option. A put option is purchased to protect against a fall in price. The buyer pays a premium to the seller of this option. The buyer has the right to sell the futures contract or enter into a short position in the futures market if the option is exercised. See call option.

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