Best Practice Guide

Glossary

Introduction

Planning an Energy Program

Funding and Approval

Education

Lighting

Central HVAC System

Procurement Policy

Building Envelope

Demand Response

Distributed Generation

Water Use

Motors

Food Service

Resources and Appendices

Lessons Learned

Best Practice Guide Glossary

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OPTIONS Return to list of terms

An option is a contractual agreement that gives the holder the right to buy (call option) or sell (put option) a fixed quantity of a security or commodity (for example, a commodity or commodity futures contract), at a fixed price, within a specified period of time. May either be standardized, exchange-traded, and government regulated, or over-the-counter customized and non-regulated.

Source: California Energy Commission