Financial option
Financial option (or, simply, option) is a contract that gives its holder the right to buy or sell an asset at some predetermined price within a specified period of time.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Option. A contract that gives its holder the right to buy or sell an asset at some predetermined price within a specified period of time.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Option. A contract that gives its holder the right to buy (or sell) an asset at a predetermined price within a specified period of time.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
