# Option

*Derivatives & Options — Finicade finance glossary*

The right — but not the obligation — to buy (a call) or sell (a put) at a set price before a set date. You pay a premium for that choice, and that asymmetry (limited loss, open-ended gain) is what makes options behave so differently from owning the asset.

**Also known as:** options

**Related terms:** [Call Option](https://finicade.com/glossary/call-option), [Put Option](https://finicade.com/glossary/put-option), [Strike Price](https://finicade.com/glossary/strike-price), [Option Premium](https://finicade.com/glossary/premium), [The Greeks](https://finicade.com/glossary/the-greeks)

**Taught in:** Hull Street — The Risk Manager's Final

Source: https://finicade.com/glossary/option