option to buy Meaning in the Cambridge English Dictionary

Meaning of “option to buy” in the English Dictionary

"option to buy" in Business English

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option to buynoun [C]

uk   us   (also option to purchase)
FINANCE, STOCK MARKET an ​agreement that gives an ​investor the ​right to ​buy a particular ​number of ​shares, or other ​financialassets, at a ​fixedprice and before a ​fixeddate: The option to ​buyexpired last Friday.
FINANCE, COMMERCE an ​agreement in which a ​companybuys a ​product from another ​company and has the ​right to ​buy more of that ​product later, but does not have to do so: exercise/have/receive an option to buy The ​executive can ​exercise the ​option to ​purchase and then ​resell it into the ​market at the ​higherprice.
FINANCE, PROPERTY a ​financialagreement that gives someone the ​right to ​buyproperty or ​land within an ​agreedtime and for an ​agreedamount, especially after they have ​rented it for a particular ​amount of ​time: The city ​leased the ​building to Rescue Ministries in 2009 with an ​option to ​buy. City ​officialssigned a $5,000 90-day ​option to ​purchase on the ​building, which is ​located in the heart of ​downtown.
(Definition of option to buy from the Cambridge Business English Dictionary © Cambridge University Press)
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