option

What is option?

option definition and meaning on Finance terms:
A financial instrument that gives the owner the right, but not the obligation, to buy or sell specific assets (e. g. a bond or a stock) at a predetermined price (the strike or exercise price) at or up to a certain future date (the exercise or maturity date). A call option gives the holder the right to purchase the underlying assets at an agreed exercise price, whereas a put option gives the holder the right to sell them at an agreed price. <

 

reference: https://www.ecb.europa.eu/home/glossary/html/index.en.html

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