An option in which the underlying benchmark is a macroeconomic variable or index. This option is pegged to the level of some economic activity or indicator such the Gross Domestic Product (GDP), Gross National Product (GNP), inflation rates, or unemployment rates, or to a price index such as the consumer price index (CPI), or the whole sale price index. Macroeconomic options are principally used by firms to hedge exposure to macroeconomic vicissitudes that bring about relevant risks such as business cycle or purchasing power.

This option, also known as a macro option, can be confined to one period (i.e., a single-period option) or extended to multiple periods (i.e., a multi-period option).