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Master Netting Agreement Futures and Options Association Form

Master Netting Agreement Futures and Options Association Form

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what does it mean when an option is exercised or assigned a call option is the right to buy the underlying future at the strike price the process for activating that right is called exercising the right or simply to exercise the option the term call actually tells us what direction the underlying instrument will move for a call option that activity is referred to as calling the underlying away from the option seller similarly a put option gives the owner of the option the right to put the underlying future to the seller of the option think of it this way if a store offers a 30-day return policy that is like a put you can put the item back on the store's shelf and get a refund if you return the item to the store you have exercised your right to sell the item back to the store option owners are the only option traders who can exercise the right those who are along the call can exercise their right to buy the underlying at the strike price and put owners those who are along the pu

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