Option Contract

An options contract is a derivative (deals with an underlying security) that gives the holder the right to exercise the contract and the seller
the obligation to fulfill the contract. [see puts and calls, put options,
call options ]

Generally the option contract normally spells out:

• The option type; put or call
• The strike/exercise price and date
  (depending on American or European style of option;
  see American, European)
• The quantity of the security along with multiplier