Homonym: Option (Choice)
An "Option" is a financial contract that gives an investor the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specific time frame. Options are commonly used in trading stocks, commodities, and other financial instruments, allowing investors to speculate on price movements or hedge against potential losses.
There are two main types of options: Call Options and Put Options. A Call Option allows the holder to purchase the underlying asset, while a Put Option allows the holder to sell it. Options can be complex, but they provide flexibility and potential for profit in various market conditions.