To your original question: They're emacs bindings. Back and Forward, Word, and such. Not all make perfect sense, but there are mnemonics.
For the update - this is a problem with the built-in terminal. You can use iTerm and get the expected (within a terminal) key bindings, or remap the option binding within its preferences panel.
For the update - this is a problem with the built-in terminal. You can use iTerm and get the expected (within a terminal) key bindings, or remap the option binding within its preferences panel.