Physical option


 

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Physical option

An option whose underlying security is a physical commodity that is not stock or futures. The physical commodity itself (a currency, treasury debt issue, commodity) - underlies that option contract. See also index option.



Physical option

Similar Matches

Physical commodity

Physical commodity

See: Commodity


Physical verification

Physical verification

A procedure auditors use to ensure that inventory recorded in the book is correct by actually checking out the physical inventory.


Physical capital

Physical capital

The same as "capital," without any adjective, in the sense of plant and equipment. The word "physical" is used only for clarity, to distinguish it from human capital and financial capital.


Options on physicals

Options on physicals

Interest rate options written on fixed income securities, as opposed to those written on interest rate futures contracts.


Exchange for physicals

Exchange for physicals

A transaction in which one party buys the physical commodity and simultaneously sells futures and the other party does the opposite - sells the physical commodity and simultaneously obtains a long futures position.


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