Answer:
Option
Explanation:
Option refers to those contracts wherein a person gets the right but is under no obligation to buy a said property at price fixed today in future. And during the said period, the option seller cannot sell the property to anybody else.
Under such a contract, the buyer pays the seller a premium which is forfeited irrespective of whether on the future date, the buyer chooses to buy the property or not.
Options are a form of derivative contracts wherein the value of such options is derived from the value of the underlying asset. Here, the underlying asset is the property.
