2. An agreement between two parties that provides one of the parties with the right but not the obligation to buy, sell or obtain a specific asset at an agreed upon price at some time in the future.
1. This agreement illustrates that the investor understands the rules set forth by the options clearing corporation and that he or she will not be an undue risk to the brokerage firm. An investor is generally required to understand the option disclosure document, which highlights various options terminology, strategies, tax implications and unique risks, before the broker will allow the investor to trade options.
2. A common type of option agreement is found in the real estate market, where one party buys the right to have the first chance of purchasing a piece of property at a specific price at some point in the future. Another common type of option agreement is a written outline that provides the details of an employee's ability to obtain stock options.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
option agreement — A form that an options investor opening an option account fills out guarantees the investor will follow trading regulations and has the financial resources to settle possible losses. Bloomberg Financial Dictionary … Financial and business terms
South Tyrol Option Agreement — A flyer from the group of German speakers who voted for staying in South Tyrol (Andreas Hofer Bund) The South Tyrol Option Agreement (German: Option in Südtirol; Italian: Opzioni in Alto Adige) refers to the period between 1939 and 1943, when the … Wikipedia
Alto Adige Option Agreement — The Alto Adige Option Agreement ( it. Opzioni in Alto Adige; de. Option in Südtirol) refers to the period between 1939 and 1943, when the native German speaking people in the province of Bolzano Bozen were given the option of either emigrating to … Wikipedia
Option — may refer to Contents 1 Legal rights 2 Sport 3 Computing 4 Publications 5 History … Wikipedia
option — op·tion 1 / äp shən/ n 1: the power or right to choose; also: a choice made or available 2: a privilege of demanding fulfillment of a contract on any day within a specified time 3: a contract conveying in exchange for the payment of a premium a… … Law dictionary
option to buy — UK US noun [C] (also option to purchase) ► FINANCE, STOCK MARKET an agreement that gives an investor the right to buy a particular number of shares, or other financial assets, at a fixed price and before a fixed date: »The option to buy expired… … Financial and business terms
agreement — agree·ment n 1 a: the act or fact of agreeing by mutual agreement b: unity of opinion, understanding, or intent; esp: the mutual assent of contracting parties to the same terms if they reach agreement ◇ Under common law, agreement is a necessary… … Law dictionary
option contract — agreement which allows one party to choose whether or not to participate in the agreement … English contemporary dictionary
option — an agreement, often for a consideration, which permits the purchase or sale of something within a stipulated time, in accordance with the terms of the agreement. For example, a right by a tenant to take up a further lease of premises, usually… … Financial and business terms
Agreement on the Conservation of Albatrosses and Petrels — The [http://www.acap.aq/ Agreement on the Conservation of Albatrosses and Petrels] (ACAP) is a [http://www.acap.aq/en/images/Core Documents/Final agreement Amended%20MoP2 2006 English.pdf legally binding international treaty] signed in 2001. It… … Wikipedia