option

Meanings

Noun

• One of a set of choices that can be made.
• The freedom or right to choose.
• A contract giving the holder the right to buy or sell an asset at a set strike price; can apply to financial market transactions, or to ordinary transactions for tangible assets such as a residence or automobile.

Verb

• To purchase an option on something.
• To configure, by setting an option.

Related

Similar words

• alternative
• choice
• possibility

Narrower meaning words

• American option, Bermudan option, European option, call option or call, put option or put, warrant

Broader meaning words

• derivative

Origin

• From French option, from Latin optiō, from optō. Equivalent to opt + -ion.