Definitions for optionˈɒp ʃən

This page provides all possible meanings and translations of the word option

Princeton's WordNet

  1. option(noun)

    the right to buy or sell property at an agreed price; the right is purchased and if it is not exercised by a stated date the money is forfeited

  2. option, alternative, choice(noun)

    one of a number of things from which only one can be chosen

    "what option did I have?"; "there no other alternative"; "my only choice is to refuse"

  3. choice, selection, option, pick(noun)

    the act of choosing or selecting

    "your choice of colors was unfortunate"; "you can take your pick"

GCIDE

  1. Option(n.)

    (Stock Exchange) A stipulated privilege, given to a party in a time contract, of demanding its fulfillment on any day within a specified limit; also, the contract giving that privelege; as, an option to buy a stock at a given price; to exercise an option.

  2. Origin: [L. optio; akin to optare to choose, wish, optimus best, and perh. to E. apt: cf. F. option.]

Wiktionary

  1. option(Noun)

    One of the choices which can be made.

  2. option(Noun)

    The freedom or right to choose.

  3. option(Noun)

    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.

  4. option(Noun)

    A button on a screen used to select an action (often "menu option")

  5. option(Verb)

    To purchase an option on something.

    The new novel was optioned by the film studio, but they'll probably never decide to make a movie from it.

  6. Origin: From option, from optio, from opto. Equivalent to .

Freebase

  1. Option

    In finance, an option is a contract which gives the owner the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price on or before a specified date. The seller incurs a corresponding obligation to fulfill the transaction, that is to sell or buy, if the long holder elects to "exercise" the option prior to expiration. The buyer pays a premium to the seller for this right. An option which conveys the right to buy something at a specific price is called a call; an option which conveys the right to sell something at a specific price is called a put. Both are commonly traded, though in basic finance for clarity the call option is more frequently discussed, as it moves in the same direction as the underlying asset, rather than opposite, as does the put. Options valuation is a topic of ongoing research in academic and practical finance. For simplicity of discussion, the value of an option is commonly decomposed into two parts: The first of these is the "intrinsic value," which is defined as the difference between the market value of the underlying and the strike price of the given option. The second part depends on a set of other factors which, through a multi-variable, non-linear interrelationship, reflect the discounted expected value of that difference at expiration. Although options valuation has been studied at least since the nineteenth century, the contemporary approach is based on the Black–Scholes model which was first published in 1973.

British National Corpus

  1. Spoken Corpus Frequency

    Rank popularity for the word 'option' in Spoken Corpus Frequency: #1944

  2. Written Corpus Frequency

    Rank popularity for the word 'option' in Written Corpus Frequency: #2058

  3. Nouns Frequency

    Rank popularity for the word 'option' in Nouns Frequency: #499


Translations for option

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