Options Contract
/ˈɑpʃənz ˈkɑntrækt/
Definitions
- (n.) A contract granting the buyer the right, but not the obligation, to buy or sell an asset at a specified price within a fixed period.
She purchased an options contract to buy shares at a set price within three months.
Forms
- options contracts
Related terms
See also
Commentary
Options contracts must clearly specify the underlying asset, strike price, and expiration to avoid ambiguity.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.