Option Definition

An agreement that conveys the right to purchase property or engage in a transaction in the future upon agreed-upon terms. An option is paid for as part of a contract, but must be "exercised" in order for the property to be purchased or the transaction to be completed.

Option

An agreement that conveys the right to purchase property or engage in a transaction in the future upon agreed-upon terms. An option is paid for as part of a contract, but must be "exercised" in order for the property to be purchased or the transaction to be completed.