An exclusive option is a type of financial contract that gives its holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price and before a specified date. It provides investors with protection against adverse market movements while allowing them to participate in potential gains if the market moves in their favor. Exclusive options are often used as part of risk management strategies for businesses, institutions or individuals who want to hedge against losses due to price fluctuations in commodities, currencies, interest rates or stock indices.