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Tuesday's Term
Exercise Price (Strike Price)
Definition:
The price, specified in the option contract, at which the underlying futures contract, security, or commodity will move from seller to buyer.
Hedge Exemption
Definition:
An exemption from speculative position limits for bona fide hedgers and certain other persons who meet the requirements of exchange and CFTC rules.
Security
Definition:
Generally, a transferable instrument representing an ownership interest in a corporation (equity security or stock) or the debt of a corporation, municipality, or sovereign. Other forms of debt such as mortgages can be converted into securities.
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