Commodity Options

Master Complex Financial Derivative Contracts

Through Interactive AI Learning



A commodity option is a financial derivative that grants the holder the right, but not the obligation, to buy or sell a specific quantity of a commodity (like oil, gold, or wheat) at a predetermined price (the strike price) on or before a set expiration date. Commodity options come in two types: call options, which allow the holder to buy the commodity, and put options, which allow the holder to sell it. These instruments are commonly used for hedging against price fluctuations or for speculative purposes. Unlike commodity futures, the holder of an option is not obligated to execute the transaction if the market conditions are unfavorable. 

6023 com-ex27-wti-put-option-asian-listedoption-date

6029 com-ex32-CPD-weather-index-option