Underlying futures contract(redirected from Underlying Futures Contracts)
Underlying futures contract
A futures contract that supports an option on that future, which is executed if the option is exercised .
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Underlying Futures Contract
In an option on a futures contract, the futures contract. The underlying futures contract supports the option; that is, if the option is exercised, the futures contract is executed. For example, an investor may buy a call giving him/her the right to buy a pork belly if the option is exercised. In this case, the pork belly is the underlying futures contract.
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