noun op·tion \ˈäp-shən\

: the opportunity or ability to choose something or to choose between two or more things

: something that can be chosen : a choice or possibility

: a right to buy or sell something for a specified price during a specified period of time

Full Definition of OPTION

:  an act of choosing
a :  the power or right to choose :  freedom of choice
b :  a privilege of demanding fulfillment of a contract on any day within a specified time
c :  a contract conveying a right to buy or sell designated securities, commodities, or property interest at a specified price during a stipulated period; also :  the right conveyed by an option
d :  a right of an insured person to choose the form in which payments due on a policy shall be made or applied
:  something that may be chosen: as
a :  an alternative course of action <didn't have many options open>
b :  an item that is offered in addition to or in place of standard equipment
:  an offensive football play in which a back may choose whether to pass or run with the ball —called also option play

Examples of OPTION

  1. You have the option of staying home or coming with us.
  2. He has the option to cancel the deal.
  3. We have a wide range of options available to us.
  4. Menu options at the café include soups, salads, and sandwiches.
  5. Select an option from the drop-down menu.
  6. Filing taxes online is an option for people with Internet access.
  7. I had no option but to start over.
  8. A good option is to do the work yourself.
  9. Employees will each be granted options to buy 1,000 shares of company stock.
  10. The option must be exercised within five years.

Origin of OPTION

French, from Latin option-, optio free choice; akin to Latin optare to choose
First Known Use: 1593

Other Business Terms

amortize, caveat emptor, clearinghouse, divest, due diligence, emolument, green-collar, marque, overhead, perquisite



Definition of OPTION

transitive verb
:  to grant or take an option on
:  to acquire the exclusive right to use (an author's work) as the basis for a motion picture <the studio optioned the novel for a film>

First Known Use of OPTION


Other Economics Terms

actuary, compound interest, globalization, indemnity, portfolio, rentier, stagflation, usurer


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