2. What can be
underlying for Options?
UNDERSTANDING
OPTIONS
What are Commodity Options contracts?
Commodity Options by MCX
Options
are derivatives instruments which gives the buyer the right, but not the
obligation, to buy or sell an underlying asset/ instrument at a specific price
on or before a certain date.
What can be
underlying for Options?
The
underlying to an option contract can be equity, commodity, foreign exchange,
futures contracts, interest rates, real estate or any other asset / instrument.
For
example, Gold futures contract can be an underlying for a Gold
option
contract.1. Commodity Options Do you know?
From MCX
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