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Two parties can also engage in an option transaction. An option is a promise granted by one Party (Option Writer) to a second Party (Option Holder) usually for a premium payment. The Option Holder is granted a right to invoke specific transactions for energy that the Option Writer promises to deliver. Demand response, ancillary services, and price cap transactions are forms of options. Any Party may take the role of a Buyer or Seller of a tender for an option transaction.