Kayla talks about Options and how they are like simple coupons. The basic definition of an options contract is a standardized and regulated financial security that gives a buyer of the options contract the right, but not the obligation to buy or sell an underlying asset at a specific price on or before a certain date. Now that's a bit of a mouthful. So what exactly does that mean? Let's look at a real-world example of an options contract that you've probably seen, but didn't even recognize, which is a coupon.