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Unformatted text preview: -short call = the obligation to short a futures contract *Put Futures Option-long put = the right to short a futures contract-short put = the obligation to long a futures contract *Futures Options-Futures options = FO-No delivery occurs-Commodities are settled in cash-Financials might take delivery-One Option = one futures contract-Expiration >Financial options ~same date as futures contract expiration >Commodity options ~expire month prior to future contract expiration-Pricing >FO prices listed as “units” >each “unit” has a $ value...
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- Fall '11