The Traderszone Network

Published in TZ Latest News 27 August, 2017 by The TZ Newswire Staff

FUTURES OPTIONS AND ASSIGNMENT

With stocks, each option contract represents right/obligation to buy/sell 100 shares of underlying [stock].
I just want to confirm relationship of futures option contract to the (underlying) futures contract. Does one futures option contract represents right/obligation to buy/sell one futures contract? If exercised, you are assigned a long or short position in the underlying futures contract?