Option (original) (raw)

An option, in finance, is a type of derivative security. It gives the holder of the option the right to purchase (or sell) a security at a predefined time in the future and for a predetermined amount. There are several types of options depending on the type of underlying instrument involved. They enclude stock options, foreign exchange options, interest rate options, warrants, options on bonds, and options on futures.

See also stock option.

This article is a stub. You can help Wikipedia by fixing it.