What can be underlying for Options?

2. What can be underlying for Options?

UNDERSTANDING OPTIONS

What are Commodity Options contracts?

Commodity Options by MCX

Options are derivatives instruments which gives the buyer the right, but not the obligation, to buy or sell an underlying asset/ instrument at a specific price on or before a certain date.



What can be underlying for Options?

The underlying to an option contract can be equity, commodity, foreign exchange, futures contracts, interest rates, real estate or any other asset / instrument.

For example, Gold futures contract can be an underlying for a Gold
option contract.

1. Commodity Options Do you know?






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