BUND Futures Option is an American option that settles into a BUND Futures (q. V.) contract. Payment of the option premium is "futures-style, which means none of it occurs immediately, and a piece of it occurs with each daily mark-to-market. An implication of this is that the "buyer" (really, the "long") may pay no premium and the "seller" (really, the "short") may pay all the premium!
Barry Goldsmith
| APA | Barry Goldsmith. (2010). BUND Futures Option. Retrieved September 26, 2026, from http://smartdefine.org/bund_futures_option/definitions/1149117 |
| Chicago | Barry Goldsmith. 2010. "BUND Futures Option" http://smartdefine.org/bund_futures_option/definitions/1149117 (accessed September 26, 2026). |
| Harvard | Barry Goldsmith 2010, BUND Futures Option, Smart Define, viewed 26 September, 2026, <http://smartdefine.org/bund_futures_option/definitions/1149117>. |
| MLA | Barry Goldsmith. "BUND Futures Option" 21 October 2010. Web. 26 September 2026. <http://smartdefine.org/bund_futures_option/definitions/1149117> |