{ "model": { "rank": 6680, "code": "thing-q187860", "model_id": "vr.tr.option", "name": "option", "purpose": "Let an agent explain options and their types and mechanics, describe pricing concepts and uses, present risks and regulation, and avoid personalised investment advice.", "family": "Thing Registry", "category": "Information and virtual systems", "status": "research-draft", "kind": "thing", "plane": "INF", "domain": "INF.KNW", "industry": "", "version": "", "url": "/models/thing/q187860/", "tier": 2, "score": 59, "payload": { "layer": "wikidata", "aliases": [ "American option", "European option", "Asian option", "New York option cut", "lookback option", "call option", "put option", "interest rate option", "exotic option", "stock-market index option", "Cliquet", "Chooser option", "mountain range", "rainbow option", "barrier option", "Bermuda option" ], "aliasCount": 16, "merged": 16, "knownIn": 59, "facets": null, "markers": [], "lexicalClass": "", "senseRank": null, "alsoRegisteredAs": "vr.tr.option-cognition", "source": { "dataset": "wikidata", "item": "Q187860", "url": "https://www.wikidata.org/wiki/Q187860", "license": "CC0 1.0" } }, "research": { "vercy": "1.0-draft", "publication": { "status": "research-draft", "adjudicationStatus": "unreviewed", "publishableCanonical": false, "generatedAt": "2026-09-12T04:28:22Z", "providers": [ "Claude" ], "breadth": "written by Claude from model knowledge without web access - no source was read, every claim is a lead to verify", "pass": 2, "wave": 2, "engine": "claude" }, "metaModel": { "id": "THING-Q187860", "registryId": "vr.tr.option", "name": "option", "version": "0.2.0-wave.2", "entryKind": "thing", "family": "Thing Registry", "domain": [ "INF.KNW" ], "status": "research-draft" }, "canonicalUrl": "https://ver.cy/models/thing/q187860/", "model": { "registry_id": "vr.tr.option", "name": "option", "purpose": "Let an agent explain options and their types and mechanics, describe pricing concepts and uses, present risks and regulation, and avoid personalised investment advice.", "definition": "A financial derivative contract giving the holder the right, but not the obligation, to buy or sell an underlying asset at a set price on or before a set date, as a call option to buy or a put option to sell, in styles such as American options exercisable any time, European options exercisable at expiry, and exotic forms such as Asian and lookback options, traded on exchanges and over the counter and priced by models such as Black-Scholes; options are used for hedging, speculation and employee compensation.", "what_it_is_for": "Contracts giving rights to buy or sell assets.", "affordances": [ "explain types and mechanics", "describe pricing concepts", "present risks and regulation", "avoid personalised advice" ], "distinguishing_features": [ "Asymmetric rights", "Strike and expiry", "Premium", "Pricing models" ], "appearance": "Not physical; contracts and quotes.", "visual_identification": [ "Right but not obligation to buy or sell", "Calls and puts, American and European styles", "A future obliges both parties; a warrant is issued by the company" ], "physical_properties": [], "families_and_kinds": [ "call and put options", "American and European options", "exotic options such as Asian and lookback", "exchange-traded and over-the-counter options", "employee stock options" ], "related_models": [ { "relation": "is a kind of", "target": "derivative", "why": "category" }, { "relation": "is related to", "target": "interest", "why": "rates in option pricing" }, { "relation": "is related to", "target": "debt-to-equity ratio", "why": "another financial measure entry" }, { "relation": "is related to", "target": "decision", "why": "options as choices in real options analysis" } ], "identifiers": [], "standards_and_regulation": [ "Securities and derivatives regulation", "Exchange rules and clearing", "Accounting standards for options" ], "failure_modes_and_hazards": [ "Agents giving personalised investment advice", "Leverage losses for inexperienced traders", "Model risk in pricing" ], "in_scope": [], "out_of_scope": [], "characteristics": [] }, "sources": [], "structure": { "bundles": [ { "id": "understand", "name": "Understand", "description": "What options are.", "rationale": "Finance.", "layers": [ { "id": "mechanics", "name": "Mechanics", "description": "Mechanics and types.", "findings": [ { "id": "mechanics-finding", "name": "Mechanics", "description": "Mechanics.", "questions": [ { "text": "How do calls, puts, strikes, expiry and premiums work, and how do American, European and exotic options differ?", "kind": "definition" }, { "text": "Is personalised investment advice being sought, which is out of scope?", "kind": "boundary" } ] } ] }, { "id": "pricing", "name": "Pricing", "description": "Pricing concepts.", "findings": [ { "id": "pricing-finding", "name": "Pricing", "description": "Pricing.", "questions": [ { "text": "How do models such as Black-Scholes price options, and what do volatility and the Greeks mean?", "kind": "definition" }, { "text": "Which entry fits option pricing?", "kind": "action" } ] } ] } ] }, { "id": "use", "name": "Use", "description": "Uses.", "rationale": "Practice.", "layers": [ { "id": "hedging", "name": "Hedging", "description": "Hedging and speculation.", "findings": [ { "id": "hedging-finding", "name": "Hedging", "description": "Hedging.", "questions": [ { "text": "How are options used to hedge risk and to speculate, and what are common strategies, in general terms?", "kind": "provenance" }, { "text": "Which entry fits hedging?", "kind": "action" } ] } ] }, { "id": "employee", "name": "Employee", "description": "Employee stock options.", "findings": [ { "id": "employee-finding", "name": "Employee", "description": "Employee.", "questions": [ { "text": "How do employee stock options work, and how are they taxed and accounted for, in general terms?", "kind": "provenance" }, { "text": "Is tax or legal advice needed from a professional?", "kind": "boundary" } ] } ] } ] }, { "id": "risk", "name": "Risk", "description": "Risks and regulation.", "rationale": "Regulation.", "layers": [ { "id": "risks", "name": "Risks", "description": "Risks.", "findings": [ { "id": "risks-finding", "name": "Risks", "description": "Risks.", "questions": [ { "text": "What risks do options carry for buyers and writers, and what do regulators warn retail investors?", "kind": "provenance" }, { "text": "Which entry fits investor protection?", "kind": "action" } ] } ] }, { "id": "regulation", "name": "Regulation", "description": "Regulation.", "findings": [ { "id": "regulation-finding", "name": "Regulation", "description": "Regulation.", "questions": [ { "text": "How are options markets regulated, cleared and reported?", "kind": "provenance" }, { "text": "Which entry fits derivatives regulation?", "kind": "action" } ] } ] } ] }, { "id": "learn", "name": "Learn", "description": "History and teaching.", "rationale": "Education.", "layers": [ { "id": "history", "name": "History", "description": "History.", "findings": [ { "id": "history-finding", "name": "History", "description": "History.", "questions": [ { "text": "How did options markets and pricing theory develop, from early contracts to Black, Scholes and Merton?", "kind": "provenance" }, { "text": "Which references are standard?", "kind": "provenance" } ] } ] }, { "id": "teach", "name": "Teach", "description": "Teaching.", "findings": [ { "id": "teach-finding", "name": "Teach", "description": "Teaching.", "questions": [ { "text": "How can options be taught with payoff diagrams?", "kind": "action" }, { "text": "Which misconceptions arise?", "kind": "provenance" } ] } ] } ] } ] }, "openQuestions": [ "Should option pricing be a separate entry?", "How should regulators be linked?", "How should educational resources be linked?" ], "statistics": { "bundles": 4, "layers": 8, "findings": 8, "questions": 16 } }, "draft": { "generator": "vr.draft.v3", "status": "draft-generated", "researched": false, "archetype": "discipline or field of knowledge", "method": "Written from the archetype playbook - what this kind of thing needs beyond identity and provenance - and from the structure that recurred across 6,333 models already researched by two engines. Applied to this entry by rule. No source was read for this thing and no claim here is researched. This entry carries no facets of its own, so they were inferred from its domain - a guess about a whole domain applied to one thing.", "facetsInferred": true, "nextPass": "A researcher replaces this draft with a sourced specification. Treat every sentence below as a proposal to argue with.", "purpose": "Give an agent a durable, checkable way to recognise a option, record what state it is in, and decide what may be done with it.", "whatItIs": "Let an agent explain options and their types and mechanics, describe pricing concepts and uses, present risks and regulation, and avoid personalised investment advice.", "characteristics": { "substance": "information", "origin": "conceptual", "agency": "inert" }, "whatYouCanDoWithIt": [ "read and interpreted" ], "distinguishingFeatures": [ "Names folded into this entry, which a task may need to split apart again: American option, European option, Asian option, New York option cut, lookback option, call option, put option, interest rate option, exotic option, stock-market index option, Cliquet, Chooser option.", "16 finer distinctions are held as aliases rather than separate entries, because telling them apart needs a task that asks for it.", "Described in 59 Wikipedia languages, which is a measure of how widely the thing is known, not of how important it is." ], "openQuestionsForResearch": [ "Which of the bundles below does a real task actually need, and which are ceremony?", "What does this thing have that the facets do not capture at all?", "Which neighbouring kind is most often confused with a option, and on what evidence are they told apart?" ], "whatItIsMadeOf": "content that has to be carried by something else", "physicalCharacter": [ "Does nothing on its own; everything it does, something else did to it.", "These come from the domain this entry sits in rather than from the entry itself, so treat them as a first guess about the whole domain applied to one thing." ], "whatCanBeDoneWithIt": [ "read it and act on what it says" ], "howItIsRecognised": [], "relatedModels": [ { "relation": "covers", "note": "Finer kinds folded into this entry because telling them apart needs a task that asks for it. Each is a model waiting to be split out when one does.", "targets": [ "American option", "European option", "Asian option", "New York option cut", "lookback option", "call option", "put option", "interest rate option", "exotic option", "stock-market index option", "Cliquet", "Chooser option" ] } ], "standing": "Described in 59 Wikipedia languages, which measures how widely it is written about rather than how important or how common it is. 16 finer distinctions are held inside this entry as names rather than as separate models.", "structure": { "bundles": [ { "id": "identity-and-classification", "name": "Identity, naming and classification", "description": "How an agent tells one option from another, and a option from things that resemble it.", "rationale": "Recognition comes before every other claim. Without stable identity nothing else in the model can be trusted to be about the same thing twice.", "layers": [ { "id": "naming-and-identifiers", "name": "Names and identifiers", "description": "The names this thing goes by and the identifiers that survive translation and time.", "findings": [ { "id": "preferred-name-and-aliases", "name": "Preferred name, aliases and local names", "description": "Which name to use, which names mean the same thing, and which merely sound similar.", "questions": [ { "id": "preferred-name-and-aliases-q01", "text": "What identifies and describes the name of a option, and in what units or vocabulary?", "kind": "definition", "answer_data": [ "identifiers", "types and classes", "values with units", "explicit unknowns" ] }, { "id": "preferred-name-and-aliases-q02", "text": "Who or what asserted this about the name of a option, by which method, and when was it true?", "kind": "provenance", "answer_data": [ "authority", "method", "evidence", "event time", "knowledge time" ] }, { "id": "preferred-name-and-aliases-q03", "text": "What may an agent decide or do once the name of a option is known, and what must it refuse?", "kind": "action", "answer_data": [ "permitted actions", "preconditions", "refusals", "escalation" ] } ] }, { "id": "stable-identifiers", "name": "Stable identifiers and external keys", "description": "Identifiers that keep pointing at this kind of thing across systems and languages.", "questions": [ { "id": "stable-identifiers-q01", "text": "What identifies and describes an identifier for a option, and in what units or vocabulary?", "kind": "definition", "answer_data": [ "identifiers", "types and classes", "values with units", "explicit unknowns" ] }, { "id": "stable-identifiers-q02", "text": "Who or what asserted this about an identifier for a option, by which method, and when was it true?", "kind": "provenance", "answer_data": [ "authority", "method", "evidence", "event time", "knowledge time" ] }, { "id": "stable-identifiers-q03", "text": "What may an agent decide or do once an identifier for a option is known, and what must it refuse?", "kind": "action", "answer_data": [ "permitted actions", "preconditions", "refusals", "escalation" ] } ] } ] }, { "id": "classification-and-granularity", "name": "Classification and granularity", "description": "Where a option sits among kinds, and how finely a task needs to cut it.", "findings": [ { "id": "kind-and-parents", "name": "Kind, parents and neighbouring kinds", "description": "The classes this thing belongs to and the ones it is next to.", "questions": [ { "id": "kind-and-parents-q01", "text": "What identifies and describes the kind of a option, and in what units or vocabulary?", "kind": "definition", "answer_data": [ "identifiers", "types and classes", "values with units", "explicit unknowns" ] }, { "id": "kind-and-parents-q02", "text": "Who or what asserted this about the kind of a option, by which method, and when was it true?", "kind": "provenance", "answer_data": [ "authority", "method", "evidence", "event time", "knowledge time" ] }, { "id": "kind-and-parents-q03", "text": "What may an agent decide or do once the kind of a option is known, and what must it refuse?", "kind": "action", "answer_data": [ "permitted actions", "preconditions", "refusals", "escalation" ] } ] }, { "id": "distinguishing-features", "name": "Distinguishing features", "description": "What separates a option from the things most often confused with it.", "questions": [ { "id": "distinguishing-features-q01", "text": "What identifies and describes what distinguishes a option, and in what units or vocabulary?", "kind": "definition", "answer_data": [ "identifiers", "types and classes", "values with units", "explicit unknowns" ] }, { "id": "distinguishing-features-q02", "text": "Who or what asserted this about what distinguishes a option, by which method, and when was it true?", "kind": "provenance", "answer_data": [ "authority", "method", "evidence", "event time", "knowledge time" ] }, { "id": "distinguishing-features-q03", "text": "What may an agent decide or do once what distinguishes a option is known, and what must it refuse?", "kind": "action", "answer_data": [ "permitted actions", "preconditions", "refusals", "escalation" ] } ] } ] } ] }, { "id": "state-and-lifecycle", "name": "State and lifecycle", "description": "The states a option passes through and the events that move it between them.", "rationale": "Most decisions about a thing depend on what state it is in now, which is a claim with a time on it, not a property.", "layers": [ { "id": "lifecycle-stages", "name": "Lifecycle stages", "description": "From coming into existence to ceasing to be one of these.", "findings": [ { "id": "stages-and-transitions", "name": "Stages and transitions", "description": "The stages worth naming and what moves a option between them.", "questions": [ { "id": "stages-and-transitions-q01", "text": "What identifies and describes the lifecycle of a option, and in what units or vocabulary?", "kind": "definition", "answer_data": [ "identifiers", "types and classes", "values with units", "explicit unknowns" ] }, { "id": "stages-and-transitions-q02", "text": "Who or what asserted this about the lifecycle of a option, by which method, and when was it true?", "kind": "provenance", "answer_data": [ "authority", "method", "evidence", "event time", "knowledge time" ] }, { "id": "stages-and-transitions-q03", "text": "What may an agent decide or do once the lifecycle of a option is known, and what must it refuse?", "kind": "action", "answer_data": [ "permitted actions", "preconditions", "refusals", "escalation" ] } ] } ] }, { "id": "observations-and-status", "name": "Observations and current status", "description": "What is observed about a option, how often and by whom.", "findings": [ { "id": "observation-record", "name": "Observation record", "description": "How an observation of a option is recorded so that it can be superseded rather than overwritten.", "questions": [ { "id": "observation-record-q01", "text": "What identifies and describes an observation of a option, and in what units or vocabulary?", "kind": "definition", "answer_data": [ "identifiers", "types and classes", "values with units", "explicit unknowns" ] }, { "id": "observation-record-q02", "text": "Who or what asserted this about an observation of a option, by which method, and when was it true?", "kind": "provenance", "answer_data": [ "authority", "method", "evidence", "event time", "knowledge time" ] }, { "id": "observation-record-q03", "text": "What may an agent decide or do once an observation of a option is known, and what must it refuse?", "kind": "action", "answer_data": [ "permitted actions", "preconditions", "refusals", "escalation" ] } ] } ] } ] }, { "id": "content-and-access", "name": "Content, encoding and access", "description": "What a option says, how it is encoded and who may read it.", "rationale": "An informational thing carries content that can be copied, versioned and withheld, none of which its physical carrier explains.", "layers": [ { "id": "content-and-encoding", "name": "Content and encoding", "description": "The content itself, its format and its language.", "findings": [ { "id": "content-and-format", "name": "Content, format and language", "description": "What a option contains and in what form it is held.", "questions": [ { "id": "content-and-format-q01", "text": "What identifies and describes the content of a option, and in what units or vocabulary?", "kind": "definition", "answer_data": [ "identifiers", "types and classes", "values with units", "explicit unknowns" ] }, { "id": "content-and-format-q02", "text": "Who or what asserted this about the content of a option, by which method, and when was it true?", "kind": "provenance", "answer_data": [ "authority", "method", "evidence", "event time", "knowledge time" ] }, { "id": "content-and-format-q03", "text": "What may an agent decide or do once the content of a option is known, and what must it refuse?", "kind": "action", "answer_data": [ "permitted actions", "preconditions", "refusals", "escalation" ] } ] } ] }, { "id": "access-and-rights", "name": "Access, rights and retention", "description": "Who may read, copy or change it, and for how long it is kept.", "findings": [ { "id": "access-rules", "name": "Access rules and retention", "description": "The permissions attached to a option and the period it survives.", "questions": [ { "id": "access-rules-q01", "text": "What identifies and describes access to a option, and in what units or vocabulary?", "kind": "definition", "answer_data": [ "identifiers", "types and classes", "values with units", "explicit unknowns" ] }, { "id": "access-rules-q02", "text": "Who or what asserted this about access to a option, by which method, and when was it true?", "kind": "provenance", "answer_data": [ "authority", "method", "evidence", "event time", "knowledge time" ] }, { "id": "access-rules-q03", "text": "What may an agent decide or do once access to a option is known, and what must it refuse?", "kind": "action", "answer_data": [ "permitted actions", "preconditions", "refusals", "escalation" ] } ] } ] } ] }, { "id": "subject-and-method", "name": "Subject matter and method", "description": "What option studies and how it establishes anything.", "rationale": "A field is identified by its questions and its methods, and those are what distinguish it from the fields next to it.", "layers": [ { "id": "subject", "name": "Subject matter", "description": "The questions it takes as its own.", "findings": [ { "id": "subject-record", "name": "Questions and objects of study", "description": "What it is about, stated so a neighbouring field can be told apart.", "questions": [ { "id": "subject-record-q01", "text": "What questions and objects does option take as its own?", "kind": "definition" }, { "id": "subject-record-q02", "text": "Which questions does it share with a neighbouring field, and who claims them?", "kind": "boundary" } ] } ] }, { "id": "method", "name": "Method and evidence", "description": "How claims are established and what counts as evidence.", "findings": [ { "id": "method-record", "name": "Methods and standards of evidence", "description": "The methods used and what they are taken to establish.", "questions": [ { "id": "method-record-q01", "text": "By what methods does option establish claims, and what counts as sufficient evidence?", "kind": "provenance" }, { "id": "method-record-q02", "text": "What kind of claim can this field not settle, and where should an agent look instead?", "kind": "action" } ] } ] } ] }, { "id": "institutions-and-classification", "name": "Institutions and classification", "description": "Where option is practised and how catalogues place it.", "rationale": "The institutional footprint is the evidence that a field exists as a field rather than as a topic.", "layers": [ { "id": "institutions", "name": "Institutional markers", "description": "Societies, journals, degrees and departments.", "findings": [ { "id": "institution-record", "name": "Bodies and venues", "description": "Where the field organises itself.", "questions": [ { "id": "institution-record-q01", "text": "Which societies, journals or degrees mark option as an established field?", "kind": "provenance" }, { "id": "institution-record-q02", "text": "What would show that it is emerging or dissolving rather than established?", "kind": "boundary" } ] } ] }, { "id": "classification", "name": "Classification schemes", "description": "Where library and research classifications put it.", "findings": [ { "id": "classification-record", "name": "Codes and their disagreements", "description": "The classification codes that place it, and where they differ.", "questions": [ { "id": "classification-record-q01", "text": "Which classification schemes place option, under what codes?", "kind": "definition" }, { "id": "classification-record-q02", "text": "Where do those schemes disagree about its scope?", "kind": "boundary" } ] } ] } ] }, { "id": "provenance-and-evidence", "name": "Provenance, evidence and time", "description": "Where every claim about a option came from and when it held.", "rationale": "A claim without a source and a time cannot be superseded, only overwritten, and an agent that overwrites loses the ability to explain itself.", "layers": [ { "id": "source-and-authority", "name": "Source and authority", "description": "Who said it, on what evidence, and how strongly.", "findings": [ { "id": "claim-provenance", "name": "Claim provenance and confidence", "description": "The authority behind each claim about a option and how confident it is.", "questions": [ { "id": "claim-provenance-q01", "text": "What identifies and describes a claim about a option, and in what units or vocabulary?", "kind": "definition", "answer_data": [ "identifiers", "types and classes", "values with units", "explicit unknowns" ] }, { "id": "claim-provenance-q02", "text": "Who or what asserted this about a claim about a option, by which method, and when was it true?", "kind": "provenance", "answer_data": [ "authority", "method", "evidence", "event time", "knowledge time" ] }, { "id": "claim-provenance-q03", "text": "What may an agent decide or do once a claim about a option is known, and what must it refuse?", "kind": "action", "answer_data": [ "permitted actions", "preconditions", "refusals", "escalation" ] } ] } ] }, { "id": "time-and-versions", "name": "Time, versions and supersession", "description": "When a claim was true, when it was learnt, and what replaced it.", "findings": [ { "id": "validity-and-supersession", "name": "Validity period and supersession", "description": "How an old claim about a option is retired without being erased.", "questions": [ { "id": "validity-and-supersession-q01", "text": "What identifies and describes the validity of a claim about a option, and in what units or vocabulary?", "kind": "definition", "answer_data": [ "identifiers", "types and classes", "values with units", "explicit unknowns" ] }, { "id": "validity-and-supersession-q02", "text": "Who or what asserted this about the validity of a claim about a option, by which method, and when was it true?", "kind": "provenance", "answer_data": [ "authority", "method", "evidence", "event time", "knowledge time" ] }, { "id": "validity-and-supersession-q03", "text": "What may an agent decide or do once the validity of a claim about a option is known, and what must it refuse?", "kind": "action", "answer_data": [ "permitted actions", "preconditions", "refusals", "escalation" ] } ] } ] } ] } ] }, "statistics": { "bundles": 6, "layers": 12, "findings": 14, "questions": 38 } } } }