OPTION CONTRACT


Meaning of OPTION CONTRACT in English

A unilateral contract giving the buyer the right, but not the obligation, to buy or sell a commodity, or a futures contract, at a specified price within a certain time period. It is unilateral because only one party (the buyer) has the right to demand performance on the contract. If the buyer exercises his right, the seller (writer or grantor) must fulfill his obligation at the strike price, regardless of the current market price of the asset.

A guide to futures and options market technology English dictionary.      Английский словарь-руководство по фьючерсам и опционам рыночных технологий .