Skip to Content

option instruments

Option instruments are derivatives such as a put, call, swap, or floor designed to manage basis risk by allowing the hedger to determine when to liquidate the contract.

On This Page

option instruments

Option instruments are derivatives such as a put, call, swap, or floor designed to manage basis risk by allowing the hedger to determine when to liquidate the contract.

Additional Information


If an option expires, it has no further value.

Related Terms