These contracts give the holder the right to buy or sell securities at a set price or a set period of time. Investors often use them to protect, or hedge, an existing investment. An option is part of a class of securities called derivatives, so named because these securities derive their value from the worth of an underlying investment.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). options. Retrieved September 20, 2026, from http://smartdefine.org/options/definitions/1159844 |
| Chicago | Barry Goldsmith. 2010. "options" http://smartdefine.org/options/definitions/1159844 (accessed September 20, 2026). |
| Harvard | Barry Goldsmith 2010, options, Smart Define, viewed 20 September, 2026, <http://smartdefine.org/options/definitions/1159844>. |
| MLA | Barry Goldsmith. "options" 21 October 2010. Web. 20 September 2026. <http://smartdefine.org/options/definitions/1159844> |