Definitions for call option
call op·tion

Princeton's WordNetRate this definition:0.0 / 0 votes

1. call optionnoun

   an option to buy

2. call option, callnoun

   the option to buy a given stock (or stock index or commodity future) at a given price before a given date

WikipediaRate this definition:0.0 / 0 votes

1. Call option

   In finance, a call option, often simply labeled a "call", is a contract between the buyer and the seller of the call option to exchange a security at a set price. The buyer of the call option has the right, but not the obligation, to buy an agreed quantity of a particular commodity or financial instrument (the underlying) from the seller of the option at or before a certain time (the expiration date) for a certain price (the strike price). This effectively gives the owner a long position in the given asset. The seller (or "writer") is obliged to sell the commodity or financial instrument to the buyer if the buyer so decides. This effectively gives the seller a short position in the given asset. The buyer pays a fee (called a premium) for this right. The term "call" comes from the fact that the owner has the right to "call the stock away" from the seller.

ChatGPTRate this definition:0.0 / 0 votes

1. call option

   A call option is a financial contract that gives the holder the right, but not the obligation, to buy a specific amount of an underlying asset, such as a stock, commodity, currency, or other financial instruments, at a predetermined price (the strike price) within a specific time period. The seller, also called the writer, of the call option, is obliged to sell the asset if the holder decides to exercise the option. Investors buy call options when they anticipate the price of the underlying asset will increase.

WikidataRate this definition:0.0 / 0 votes

1. Call option

   A call option, often simply labeled a "call", is a financial contract between two parties, the buyer and the seller of this type of option. The buyer of the call option has the right, but not the obligation to buy an agreed quantity of a particular commodity or financial instrument from the seller of the option at a certain time for a certain price. The seller is obligated to sell the commodity or financial instrument should the buyer so decide. The buyer pays a fee for this right. The buyer of a call option purchases it in the hope that the price of the underlying instrument will rise in the future. The seller of the option either expects that it will not, or is willing to give up some of the upside from a price rise in return for the premium and retaining the opportunity to make a gain up to the strike price. Call options are most profitable for the buyer when the underlying instrument moves up, making the price of the underlying instrument closer to, or above, the strike price. The call buyer believes it's likely the price of the underlying asset will rise above the option's strike price by the exercise date. The buyer's maximum loss is limited to the option premium. The profit for the buyer can be very large, and is determined by how high the underlying instrument's spot price rises. When the price of the underlying instrument surpasses the strike price, the option is said to be "in the money".

Matched Categories

1. • Option
   • Stock Option

How to pronounce call option?

1. Alex

   US English

   David

   US English

   Mark

   US English

   Daniel

   British

   Libby

   British

   Mia

   British

   Karen

   Australian

   Hayley

   Australian

   Natasha

   Australian

   Veena

   Indian

   Priya

   Indian

   Neerja

   Indian

   Zira

   US English

   Oliver

   British

   Wendy

   British

   Fred

   US English

   Tessa

   South African

How to say call option in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of call option in Chaldean Numerology is: 6

2. Pythagorean Numerology

   The numerical value of call option in Pythagorean Numerology is: 9

References

1. ^ Princeton's WordNet
   http://wordnetweb.princeton.edu/perl/webwn?s=call option
2. ^ Wikipedia
   https://en.wikipedia.org/wiki/Call_Option
3. ^ ChatGPT
   https://chat.openai.com
4. ^ Wikidata
   https://www.wikidata.org/w/index.php?search=call option