Option deed

option deed: a legal instrument in writing by which party A (usually called the ‘grantor’) confers on party B (usually called the ‘grantee’) a legal right to do something, for example acquire property or shares at a predetermined price (or price formula); the instrument will usually set a limited window of time within which the option can be exercised and also the mechanics (where the option is to purchase an asset) of completing the sale and purchase following the exercise of the option.