Contract Size

The deliverable quantity of goods or commodities underlying futures, forward, and option contracts.


Each contract will have a well defined contract size. For example, most equity options have a contract size of 100 shares. So, if the option is exercised, 100 shares of the underlying company must be transferred between the option holder and writer.



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Related Terms

Aggregate Exercise Price

Call

Exercise

Forward Contract

Futures Contract

Option

Put

Strike Price

Underlying

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