Stock Option Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Stock Option, written in plain English, along with examples of how it is used.

What is Stock Option?

(n) Stock option is the future right available to a buyer of future deal to purchase the commodity at the agreed price paying the consideration agreed at the time the option is granted. Stock option is available in forward trading where in the buyer can settle the deal by paying or accepting the difference of option price and market price without changing the commodity, stock etc