An index option that has a real estate investment trust (REIT) (REIT index) as underlying. In other words, the underlying is the entire performance of a specific REIT index. This option gives the holder the right, without the obligation, to buy or sell, upon exercise, a standardized value of the index, for a specified price at a pre-determined future date. If exercised, index option is settled in cash, because physical delivery is not possible.

This option allows investors to take a view on market movements or to hedge holdings in the underlying REIT units.