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Commodity option

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Georgia Court Imposes Fines And Other Sanctions Against Atlanta-Based Saxon Financial Services Inc., Charged By The CFTC With Commodity Option Fraud
Mondo Visione  Aug 26  Comment 
The U.S. Commodity Futures Trading Commission (CFTC) today announced that it obtained more than $4.3 million in civil monetary penalties and equitable relief in an order against Saxon Financial Services Inc. (Saxon) of Atlanta, Ga., charged by the...




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See also Commodity Future

A commodity option gives the buyer the right but not the obligation to buy or sell a certain quantity of that commodity at a particular price after a particular period of time. These futures and options can in turn, be traded on secondary markets.

For example: one might buy a future from a trader on the CBOT (a Commodity exchange) which gives me the right but not the obligation to sell 2 bushels of wheat on 11th December, 2008 at 1230$ per bushel.

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