Dealer options
Dealer options
Over-the-counter options, such as those offered by government and mortgage-backed securities dealers.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Dealer Option
An over-the-counter, option contract in which the underlying asset is a physical commodity. Most of the time, clearing houses write dealer options when they hold the underlying asset (for a call) or sufficient cash to buy the underlying asset (for a put).
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved