This article is from the ZTerm FAQ, by Les Jones email@example.com with numerous contributions by others.
If you are using System 7 on a U.S. system, install the ZTerm
Keyboard layout. To do this, drag the keyboard layout to the icon
of the closed system folder. When asked if you want to install the
keyboard layout, click OK. The option key will now emulate the
If you are using a non-U.S. system, or a system earlier than 7.0,
select Terminal Settings from the Settings menu. Assign the control
key function to the command key.