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Last edited 17 Mar 2022
Contract with option
Public procurement toolbox, terminology, published by the Organisation for Economic Co-operation and Development (OECD), states: ‘A contract with option is (a) contract that gives the purchaser of the option the right, but not the obligation, to buy (a “call” option) or to sell (a “put” option), e.g. a particular financial instrument or commodity at a predetermined price (the “strike” price) within a given time span (American option) or on a given date (European option).’
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