WordCmp.com

derivative instrument vs option

option vs derivative instrument

derivative instrument and option both are nouns.

Word NounAdjectiveVerbAdverb
derivative instrument Yes No No No
option Yes No No No
As nouns, option is a hyponym of derivative instrument; that is, option is a word with a more specific, narrower meaning than derivative instrument:
  • derivative instrument: 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 instrument include futures contract, OTC derivative, over-the-counter derivative.
derivative instrument (noun) option (noun)
a financial instrument whose value is based on another security the act of choosing or selecting
one of a number of things from which only one can be chosen
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
Difference between derivative instrument and option

© WordCmp.com 2024, CC-BY 4.0 / CC-BY-SA 3.0.