A contract giving the holder or buyer a right to purchase or sell an asset. The option holder is not obligated to conduct the trade and can choose to let the option lapse. The price at which the transaction can be carried out is mentioned in the options contract as is the validity period. Beyond this period the option is worthless even if it has not been used.

Random Finance Terms for the Letter O

  • Optimal Portfolio
  • Optional Redemption Provision
  • Optimization Approach to Indexing
  • Optimized Portfolio as Listed Securities
  • Option Elasticity
  • Option Not to Deliver
  • Option Premium
  • Option Price
  • Option Pricing Theory
  • Option Seller