call option

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Related to Call options: Put options

Call option

An option contract that gives its holder the right (but not the obligation) to purchase a specified number of shares of the underlying stock at the given strike price, on or before the expiration date of the contract.

Call Option

An option contract in which the holder has the right (but not the obligation) to buy the underlying asset at an agreed-upon price on or before the expiration date of the contract, regardless of the prevailing market price of the underlying asset. One buys a call option if one believes the price for the underlying asset will rise by the end of the contract. If the price does rise, the holder may buy and resell the underlying asset for a profit. If the price does not rise, the option expires and the holder's loss is limited to the price of buying the contract. Call options may be used on their own or in conjunction with put options to create an option spread in order to hedge risk.

call option

See call.

Call option.

Buying a call option gives you, as owner, the right to buy a fixed quantity of the underlying product at a specified price, called the strike price, within a specified time period.

For example, you might purchase a call option on 100 shares of a stock if you expect the stock price to increase but prefer not to tie up your investment principal by investing in the stock. If the price of the stock does go up, the call option will increase in value.

You might choose to sell your option at a profit or exercise the option and buy the shares at the strike price. But if the stock price at expiration is less than the strike price, the option will be worthless. The amount you lose, in that case, is the premium you paid to buy the option plus any brokerage fees.

In contrast, you can sell a call option, which is known as writing a call. That gives the buyer the right to buy the underlying investment from you at the strike price before the option expires. If you write a call, you are obliged to sell if the option is exercised and you are assigned to meet the call.

call option

see OPTION.

call option

see OPTION.

call option

See call provision.
References in periodicals archive ?
The company said this grant of call options is to further align Ganev's interest with Kinnevik's shareholders.
In view of a potential initial public offering of KrisEnergy ( IPO ), Devan and the Seller have on 28 June 2013 agreed to amend certain terms of the Call Option, principally, the exercise price of the Call Option and following such amendment, Devan has exercised the Call Option at the IPO Exercise Price, subject to the IPO occurring by 15 August 2013 and an earn-out mechanism in which Devan agrees to pay to the Seller the difference between original exercise price and the IPO Exercise Price, subject to certain conditions being met post-listing.
The risks we describe in the report could be mitigated through the swap documentation if it provides for the swap value to be calculated on the assumption that a call option will not be exercised.
OTM call options are the best money multipliers if the underlying price makes a sharp rise.
Call options issued to employees or independent contractors (Regs.
The BSM model values call options on publicly-traded common stocks, assuming that the options, like the stocks, trade in a liquid market," explains Finnerty.
When a company hedges against a price increase, it buys a long contract or a call option.
First, we investigate bond ratings changes to determine if call options resolve information problems.
Also, the redemption price of the call options amounts to SEK159.
2002-66, the Service held that if a grantor of a qualified covered call option (QC) holds a put option on the same underlying equity, the purchased put will cause the stock and the QC to be part of a larger straddle and ineligible for the Sec.
A call option gives the holder the right to buy a share of stock from the issuer at a predetermined exercise price.
The president and CEO of the company has reportedly purchased 100,000 call options and the other six members of the group management have in total purchased 190,000 call options.