The Law Dictionary

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STOCK INDEX OPTION Definition & Legal Meaning

Definition & Citations:

A contract that gives its owner the right to buy (call option) or sell (put option) a stock index at a fixed value until a specified date. Options work exactly like regular stock options, except that an index rather than a particular stock is the underlying asset. As with stock index futures, delivery must be in cash, because it is not possible to deliver an index.

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