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 .
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.