Jurisdiction(s):
United Kingdom
Key definition
Options definition

What does Options mean? In legal practice, an option is a contractual right, not an obligation, to buy (a call) or sell (a put) an identified underlying (for example shares, commodities or currency) at an agreed strike price either on the expiry date (European-style) or at any time up to expiry (American-style). The holder pays an option premium for this right; key terms include the underlying and quantity, strike, expiry and the settlement method (physical delivery or cash settlement). Options are used to hedge risk, obtain price protection or leverage exposure, and are fundamental in derivatives, corporate finance and remuneration structures. The term is...

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UK M&A Completion Checklist: Share Option Exercise Deliverables and ITEPA s431 Elections

Precedents
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Definitions

  • Option — the respective entitlements to purchase Shares conferred on each Option Holder;
  • Option Holder — [ insert the list of Option Holders whose Options are becoming capable of exercise, or refer to the relevant schedule of Option Holders ]...
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Web page updated on 22/05/2026

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