Final answer:
An option is the right, but not obligation, to buy or sell a commodity or stock for a specified price within a specific time period.
Step-by-step explanation:
The right, but not obligation, to buy or sell a commodity or stock for a specified price within a specific time period is called an option. Options are commonly used in financial markets as a way for investors to speculate on price movements or hedge against potential losses. For example, a call option gives the holder the right to buy a stock at a predetermined price, while a put option gives the holder the right to sell a stock at a predetermined price.