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English definition of “index option”

index option

noun [C]
 
 
( also stock-index option)
FINANCE an investment based on the value of a stock index (= a set of shares that shows the value of a stock market). The investor buys the right to buy or sell that index at a particular price by a date in the future: S&P 500 Index Options The fund invested in equity index options.
(Definition of index option from the Cambridge Business English Dictionary © Cambridge University Press)
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