UK Accounting Glossary
Buying the rights to purchase an asset for a certain period of time. For example, a business may option an asset for 6 months for 10% of the sale cost. During this time they do not own the asset; however, the company that does own it is not allowed to sell it during this period.
Options are financial instruments that are derivatives or based on underlying securities such as stocks.
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This glossary post was last updated: 28th December 2018.