option to buy
Future buying privilege
An option to buy is a contractual right to purchase something at a specified price within a set timeframe.
The holder isn't obligated to buy—they simply have the option.
Common in real estate, where a potential buyer pays for the right to purchase a property later: The lease included an option to buy at the end of three years.
Also used for stocks, business assets, and intellectual property.
- callContact by phone
- putPlace in position
- strike pricePredetermined option execution level
- in the moneySlang for wealthy
- out of the moneyBelow rewarded positions
premium · derivative · contract · exercise · expiration date · expiration · leverage · warrant · hedge · speculate · right · right of first refusal · obligation · underlying · vest · stock · futures · trader
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