derivative vs option

option vs derivative

derivative and option both are nouns.

derivative is an adjective but option is not an adjective.

Word	Noun	Adjective	Verb	Adverb
derivative	Yes	Yes	No	No
option	Yes	No	No	No

As nouns, option is a hyponym of derivative; that is, option is a word with a more specific, narrower meaning than derivative:

derivative: a financial instrument whose value is based on another security
option: the right to buy or sell property at an agreed price; the right is purchased and if it is not exercised by a stated date the money is forfeited

Other hyponyms of derivative include futures contract, OTC derivative, over-the-counter derivative.

derivative (noun)	option (noun)
the result of mathematical differentiation; the instantaneous change of one quantity relative to another; df(x)/dx	the act of choosing or selecting
(linguistics) a word that is derived from another word	one of a number of things from which only one can be chosen
a financial instrument whose value is based on another security	the right to buy or sell property at an agreed price; the right is purchased and if it is not exercised by a stated date the money is forfeited
a compound obtained from, or regarded as derived from, another compound

derivative (adjective)	option (adjective)
resulting from or employing derivation

Difference between derivative and option

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