A combination of a futures and options contract is an option to purchase the futures contract.

Question

Quizplus · Accepted Answer

An option on stock index futures gives the holder the right to purchase the stock index futures contract at a specified price over a given period. This is slightly different from the stock index option that gives the holder the right to purchase the underlying index at a specified price over a given time period.

A Combination of a Futures and Options Contract Is an Option