Call an option(redirected from Calls an Option)
Call an option
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Call an Option
In a call option, to buy the underlying asset. The option holder has no obligation to call the option and only does so if he/she believes it benefits him/her. Depending upon the nature of the option, this may be done at any point during the life of the contract, or it may only be done on the contract's expiry date. The strike price of the sale is agreed upon in the option contract (that is, before the option is exercised).
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved