A:A put option on a bond is a provision that allows the holder of the bond the right to force the issuer to pay back the principal on the bond. A put option gives the bond holder the ability to receive the principal of the bond whenever they want before maturity for whatever reason. If the bond holder feels that the prospects of the company are weakening, which could lower its ability to pay off its debts, they can simply force the issuerer to repurchase their bond through the put provision.
Crude oil options are the most widely traded energy derivative in the New York Mercantile Exchange ( NYMEX), one of the largest derivative product markets in the world. The underlying of these options is not actually crude oil itself, but crude oil futures contracts. Thus, despite their names, crude oil options are, in fact, options on futures.Both American and European types of options are available on NYMEX. American options, which allow the holder to exercise the option at any time over its maturity, are exercised into underlying futures contracts.