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Double Option
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(1) An option to buy (call) or sell (put) but not both. Exercise of the call causes the put to expire and exercise of the put causes the call to expire. Double options have been used primarily in unlisted commodity option trading, but they are also found in OTC financial structures. (2) In the operation of a bond sinking fund, the issuer is often permitted to purchase 'double' the mandatory number of bonds for the sinking fund at par. Also called Option to Double.
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