Derivatives
Short Leg
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Hedge Funds
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An American futures option that grants the holder the right, without the obligation, to sell the underlying futures contract. The holder will exercise his right if the futures price is below the exercise price before or at the expiration date. The American futures put option is worth more than the corresponding American option on the underlying asset when the futures price is below the spot price prior to the expiration date of the futures contract, and vice versa.

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