option

The story

1. Latin · derived fromoptiō“choice; option; act of choosing”
2. French · derived fromoption
3. English todayoption

From French option, from Latin optiō (“choice; option; act of choosing”), from optō (“to choose, select”). Equivalent to opt + -ion.

First known use, by meaning

• from 19th c. One of a set of choices that can be made.
• from mid-18th c. A contract giving the holder the right to buy or sell an asset at a set strike price; can apply to financial market transactions, or to ordinary transactions for tangible assets such as a residence or automobile.
• from 20th c. To purchase an option on something.