Wednesday, July 2, 2008

Types of Options





Exchange traded options (also called "listed options") is a class of exchange traded derivatives. Exchange traded options have standardized contracts, and are settled through a clearing house with fulfillment guaranteed by the credit of the exchange. Since the contracts are standardized, accurate pricing models are often available.

Exchange traded options include:
1) Stock Options.

2) Commodity Options.

3) Bond options and other interest rate options.

4) Index (equity) Options.5) Options on futures contracts.


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