Price-Based Option

What Does Price-Based Option Mean?
A derivative financial instrument in which the underlying asset is a debt security. Typically, these options give their holders the right to purchase or sell an underlying debt security (usually a bond) or to receive cash payment based on the current value of the underlying debt security.

Investopedia explains Price-Based Option
This unique type of option has been traded in the past, but is rarely traded in modern financial markets. The yield-based option is a a more commonly traded relative of the priced-based option.