Covered Option – Fincyclopedia
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Covered Option


A short call or put option position that is covered by the sale or the purchase of the underlying asset (whether it be a futures contract or a commodity). For example, in the case of futures options, a covered call is a short call position combined with a long position in futures.



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Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
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