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 ?
Also, the redemption price of the call options amounts to SEK306.20, equivalent to 120% of the volume-weighted average of the paid market price for the shares during the period from 10 May 2019 to 23 May 2019, inclusive.
In this hypothetical example, Carl receives 90 cents per share from his sale of the call option. For his 200 shares, that's $180.
It is anticipated that the hedge counterparties to the Call Options, which may include the Joint Bookrunners, will enter into transactions to hedge their respective positions under the Call Options through the purchase or sale of Shares or any other transactions, on the market and off-market, at any time, and in particular during the Reference Period and at the conversion or redemption of the Bonds.An additional application will be made for the New Bonds to be admitted to trading on the Open Market (Freiverkehr) segment of the Frankfurt Stock Exchange and such admission to trading is expected no later than 41 days after the Issue Date of the New Bonds.
Under the terms of the put and call options, the additional consideration for the 15% of Redleaf is GBP 805,427 (USD 1.046m) which is to be satisfied 50% in cash; and 50% in Porta ordinary shares at an issue price calculated with reference to the average of the mid-market closing price of Porta's ordinary shares for a period prior to the allotment date of such Porta ordinary shares.
Salam specializes in financing industrial sectors producing tangible goods, mainly agriculture and manufacturing, unlike call options which are intended to protect against all possible future price changes in financial markets, including credit markets.
Those two issues account for about $90 million in the difference in price for the disputed Chrysler call option, according to Parsons' opinion.
Finally, the final regulations contain a rule providing that the holder of a call option, warrant, convertible debt, or convertible equity issued by a partnership (or an entity eligible to elect to be treated as a partnership under Regs.
An investor sells a naked call option with a strike price of PS90.
It cites a voting rights announcement which said Aabar holds cash-settled call options of 7.85 per cent of Daimler's shares.
The adjustment of the valuation of the put and call options is based on the assessment of the executive board of Porsche SE and the board of management of Volkswagen AG on 8 September 2011 that it was no longer realistic to achieve the merger of Porsche SE into Volkswagen AG within the framework and timeframe of the basic agreement entered into by the two companies in 2009.
The pattern of returns is unchanged for put options--returns are increasing in the time to maturity--but the pattern of returns generally is reversed for call options, with returns also now increasing in the time to maturity.
The price of a call option rises with the rise in the price of its underlying security.