A contract that permits one party to buy from (or sell to) the other party something at a prespecified price during a prespecified period of time, leaving the choice of whether to do this or not (whether to "exercise" the option) up to the first party, which buys the option. Options exist for many assets, including foreign exchange.
Browse by Subjects
bull spread
Put on a put
Futures equivalent
exercise price
Tax straddle
See All Related Terms »

production cost
Group of Ten (G10)