A family of options whose underlying is a basket of assets, commodities, securities, currencies, etc. This multivariate option (warrant) is usually priced using a number of sophisticated methods and techniques. The most commonly used method is the Monte Carlo Simulation which inherently can handle numerous underlying assets at the same time by simulating the performance of each asset and then discounting the resultant payoff of the basket.

Another prominent method is the Gaussian copulas. For example, in currency basket options, the option buyer has the right, without the obligation, to receive certain currencies in exchange for a base currency, either at the spot market rate or at a predetermined rate of exchange. This kind of options is generally used by multinational corporations which characteristically have multicurrency cash flows. It is cheaper to buy an option or warrant on a basket of currencies than to buy individual options on each of the currencies making up the basket.

The basket option is also called a basket warrant.