™A contract gives its holder specified rights and its writer obligations. The premium, deliverable, strike, style and expiration determine the payoff mechanics.
Options
Option
A contract tied to an underlying asset with defined rights, obligations, strike and expiration.
Plain-English context
Put the definition to work.
Check exercise style, deliverable, multiplier, settlement and broker handling; a quoted premium is not the whole obligation.
Further reading and verification. Examples are hypothetical, not current quotes or recommendations. Product terms, tax treatment and market rules can change. OCC / Options Industry Council — options basics