[op-shuh
n] 
| 1. | the power or right of choosing. |
| 2. | something that may be or is chosen; choice. |
| 3. | the act of choosing. |
| 4. | an item of equipment or a feature that may be chosen as an addition to or replacement for standard equipment and features: a car with a long list of extra-cost options; a telephoto lens option for a camera. |
| 5. | stock option. |
| 6. | a privilege acquired, as by the payment of a premium or consideration, of demanding, within a specified time, the carrying out of a transaction upon stipulated terms; the right, as granted in a contract or by an initial payment, of acquiring something in the future: We bought one lot and took a 90-day option on an adjoining one. |
| 7. | Football. a play in which a back has a choice of either passing or running with the ball. |
| 8. | to acquire or grant an option on: The studio has optioned his latest novel for film adaptation. |
| 9. | to provide with optional equipment: The car can be fully optioned at additional cost. |
| op·tion (ŏp'shən) n.
[Latin optiō, optiōn-.] |
option
A contract that permits the owner, depending on the type of option held, to purchase or sell an asset at a fixed price until a specific date. An option to purchase an asset is a call and an option to sell an asset is a put. Depending on how an investor uses options, the risks can be quite high. Investors in options must be correct on timing as well as on valuation of the underlying asset to be successful. See also Asian option, chooser option, combination option, conventional option, European option, exercise price, exotic option, expiration date, knock-out option, lapsed option, long-term anticipation securities, restricted option, stock option.
