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Futures Option
An option contract that gives the holder the right, but not the obligation, to buy or sell a futures contract at a specified price on or before a certain date.
Forward Contract
A contractual arrangement to purchase or sell a given commodity or asset at a set price on a designated date in the future.
Forward Price
The predetermined price agreed upon in a forward contract, at which the asset will be bought or sold at a future date.
European Call
A call option that can only be exercised on the expiration date, not before.
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