Option

{
  "id": "MLC-T-INS-002425",
  "term": "Option",
  "field": "Insurance and risk management",
  "definition": "A financial contract that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price on or before a certain date. In risk management, options can be used as hedging instruments to mitigate financial risks such as currency fluctuations or commodity price volatility. They provide flexibility in managing exposure without requiring an immediate commitment to the underlying asset.",
  "url": "https://mlchart.com/terminology/insurance/option/"
}