Question Details

	Username: PrettyWoman Rating: Asked to: Chaoxiang Lee Date Created: 28 Jan 2019
Category	28
Tag	Financial
Question	What is a Dealer Option?

Advice from Guru

Hello PrettyWoman,

A dealer option is a contract issued on the physical inventory of a commodity. A dealer option is typically issued by companies that buy, sell, or otherwise use a commodity in conducting business. This type of option is not traded on an exchange. Rather, it is traded as an over-the-counter (OTC) security, and is thus less subject to scrutiny and regulation.

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