Option
Definition
A contract giving the holder the right (not obligation) to buy (call) or sell (put) an asset at a set price by an expiration date.
Example
An employee stock option is a long-dated call written by the employer.
A contract giving the holder the right (not obligation) to buy (call) or sell (put) an asset at a set price by an expiration date.
An employee stock option is a long-dated call written by the employer.