Option
Definition
An option is a noun that refers to the power or freedom to choose between alternatives. It also describes a choice or possibility available in a particular situation. In financial contexts, it refers to a contract that gives the right, but not the obligation, to buy or sell an asset at a specified price within a certain time frame.
Parts of Speech
- Noun
Pronunciation
American English
- IPA Pronunciation: /ˈɑːp.ʃən/
- Respelling: AHP-shun
British English
- IPA Pronunciation: /ˈɒp.ʃən/
- Respelling: OP-shun
Etymology
The word "option" originates from the Latin "optio," meaning "choice" or "free will." It passed into Old French as "option" before being adopted into Middle English in the late 14th century. Its use expanded in modern times to include specific applications in economics and finance.
Derivatives
- Optional (adjective)
- Optionally (adverb)
- Opt (verb)
- Optioned (verb, past tense)
- Optioning (verb, present participle)
Synonyms
- Choice
- Alternative
- Possibility
Antonyms
- Obligation
- Requirement
- Constraint
Usage
The term "option" is widely used in decision-making, programming, and finance. For example: "You have the option to attend the meeting virtually," or "Buying a call option allows the holder to purchase shares at a predetermined price."
Related Terms
- Decision: The act of choosing between alternatives.
- Preference: A greater liking for one choice over another.
- Flexibility: The ability to adapt or choose among options.
Detailed Definitions
Noun
- The power or freedom to choose: Refers to the ability to make a decision between alternatives.
- Example: "Students have the option to take elective courses."
- A choice or possibility: Describes an alternative available in a particular situation.
- Example: "The menu offers several vegetarian options."
- A financial contract: Refers to an agreement giving the holder the right to buy or sell an asset at a specified price within a set timeframe.
- Example: "He purchased a stock option to hedge against market fluctuations."
option
