A call and a put rolled into a single option contract. A double option gives the holder the right (but not the obligation) either to buy or to sell the underlying asset at the strike price. That is, there are three choices for a double option: buy, sell, or do nothing and allow the option to expire. Double options are traded in Europe.
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A commodity option traded in Europe that gives its owner the right either to call (buy) or to put (sell) the underlying asset but not both. When one side of the option is exercised, the opposite side is automatically terminated.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.