commodity option

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Commodity Option

An option contract giving the holder the right but not the obligation to buy (for a call) or sell (for a put) a futures contract on a certain stated commodity at a given strike price on or before the expiration date.

commodity option

An option either to buy or to sell a commodity futures contract at a fixed price until a specified date. See also call, put.
References in periodicals archive ?
China, which overtook India last year to become the world's biggest consumer of gold, bans trading in commodity options and forwards at present to limit speculation
The House Agriculture Committee, where the bill originated, wanted to provide narrow relief to these entities that aren't traditional financial institutions but may be swept into the Dodd-Frank regime simply because they engage in futures contracts, forward contracts, or commodity options that call for physical delivery of a commodity.
More recently, Trolle and Schwartz (2009) note that once options data are included in the valuation of commodities (in addition to futures price data), it is critical to understand the dynamics of volatility in commodity markets for pricing, hedging, and risk management of commodity options and real options.
He also assisted in drafting other Dodd-Frank Act regulations, including the Entity Definitions (rules to further define such terms as “swap dealer,” “major swap participant,” and “eligible contract participant”), commodity options, and the Volcker Rule.
But rather than assuming a party's over mentality, she focuses on lessons learned about safeguards against such busts in this crash course on commodity options (e.
There are ETFs that track the price of gold, for example, and ETFs that follow commodity options strategies.
It covers regulatory and congressional guidelines, registration, reporting and disclosure requirements, criteria for publicly traded futures and commodity options and the rules governing unprofessional conduct.
We develop simple analytic formulas for the pricing of commodity options in the presence of information costs.
About 30 years ago one of the hottest financial products being sold was commodity options.
He uses the skills he acquired in trading equity options, equity index options, currency options, commodity options, and mortgage derivatives to playing Limit Hold'em.
Siegel, 1983, "A Note on the Design of Commodity Options Contracts--A Comment", Journal of Futures Markets, 3:43-46
The formulation for commodity options followed, by Fischer Black, "The Pricing of Commodity Contracts," Journal of Financial Economics 3 (1976): 167-79.