What Does Option Instruments Mean?

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What does Option Instruments mean? Read on to discover the definition & meaning of the term Option Instruments - to help you better understand the language used in insurance policies.

Option Instruments

Option Instruments

A derivative such as a put, call, swap, or floor designed to manage basis risk by allowing the hedger to determine when to liquidate the contract. If an option expires, it has no further value.

We hope the you have a better understanding of the meaning of Option Instruments.

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