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Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Seller's Option Contract
A contract between a buyer and a seller where the seller has the ability to delay settlement of the contract beyond the normal time. A seller may exercise this option if he/she has difficulty in making delivery on the contract for any reason at all. The farthest possible settlement date is stated in the seller's option contract. This contrasts with a cash contract, where settlement is made before the regular settlement date.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved