Fixed Price Purchase Option

See: Fixed Price.

Think: lease-to-own. That is, you have a fixed purchase price of 250 grand to buy this fine home in Michigan. You are leasing it for 2 grand a month for 2 years, but your purchase option lasts 2 years. You can pay 250k and own it if you execute any time within those 2 years. If you don't, then the house goes to "market prices"; could be higher, could be lower. But you get value from having that option to buy at a fixed price.