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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.


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  Some popular types of options: stock options, bond options, index options, interest rate options, commodity options, and currency options.
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.
Under these assumptions, the value of the commodity option, C(S,t), can be written as a function of the underlying price and time.
 
 
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