Options Contracts: A contract traded on a commodity futures exchange that gives the buyer the right without obligation to buy or sell a futures contract over a specified time period. The FAIR Act of 1996 requires USDA to conduct research through pilot programs to determine if futures and options contracts can provide producers with reasonable protection from the financial risks of fluctuations in price, yield, and income inherent in the production and marketing of agricultural commodities.

 

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Options Contracts: A contract traded on a commodity futures exchange that gives the buyer the right without obligation to buy or sell a futures contract over a specified time period. The FAIR Act of 1996 requi . . . View Full Definition

Area Yield Options Contract: A contract entitling the holder to receive a payment when the area yield is below (above) the put (call) option strike yield. The strike yield is the yield at which the holder of an option c . . . View Full Definition

Options Contract Multiple: A constant, set at $100, that when multiplied by the cash index value gives the dollar value of the stock index underlying an option. That is the dollar value of the underlying stock index = . . . View Full Definition

Options Clearing Corporation (OCC): The Options Clearing Corporation issues all exchange-listed securities options in the United States and guarantees all transactions in those options. The OCC also assigns exercised options f . . . View Full Definition