An old-dated term for an option; by definition, a privilege/ option is a derivative contract granting its owner the right, but not the obligation to buy (for a call option) or sell (for a put option) a specific amount of a given security, commodity, currency, or debt, at a predetermined (fixed) price (known as the exercise price) on or before a given day (within a specified period of time). Options, whether calls, puts or combinations, can act as insurance policies for stock holdings in down or flat markets, or, if markets move favorably, can generate income on the side.

Options have no fundamental attributes because they are intangible instruments whose values depend on the tangible value of their underlyings (stocks, bonds, indices, energy, HDD or CDD values, interest rates, exchanges rates, shipping costs, etc).