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option vs derivative instrument

derivative instrument vs option

option and derivative instrument both are nouns.

Word NounAdjectiveVerbAdverb
option Yes No No No
derivative instrument Yes No No No
As nouns, derivative instrument is a hypernym of option; that is, derivative instrument is a word with a broader meaning than option:
  • 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
  • derivative instrument: a financial instrument whose value is based on another security
Other hypernyms of option include derivative.
option (noun) derivative instrument (noun)
the act of choosing or selecting a financial instrument whose value is based on another security
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 option and derivative instrument

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