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Options and Futures

At-the-Money Option

A strike price for an option that is either equal or close to the current market price of the underlying futures contract. This type of option is known as an "at-the-money" option. It allows the holder to purchase or sell the underlying asset at a price that is already reflective of the current market value. In finance, this concept is important to understand as it can impact the potential profitability of an option contract.

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