Bond Option

From Open Risk Manual

Definition

Bond Option. An option on a traded futures contract for a Bond. When exercised, the holder exercises the right to buy the future on a Bond, s/he does not exercise the right to buy a bond.

For example an option on a Treasury Bill is an option on a T Bill Future, not on a T Bill itself. Hence these are defined as a kind of futures option.

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This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.

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