call option


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Related to call option: put option

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 ?
Samsung BioLogics said the call option will be exercised by the first half of this year as the plan needs approval from Biogen boards.
Although Salam is similar to the European call option as a hedge against future price fluctuations, it, unlike options, does not stipulate the exercise price be less than the expected future price.
This is analogous to the traditional CAPM beta (23) and measures the sensitivity of the call option returns to the returns of the underlying asset, giving an indirect measure of the systematic risk of the call.
Both put and call options demand higher premium when volatility is high.
Comparison of investment opportunity and call option Real options Financial options Investment opportunity Variable Call option Current value of cash flows S Current stock price Investment expenditure X Exercise stock price Possible time of decision to T-t Time to expiration defer date Time value of money R Riskless return rate Uncertainty of future cash [[sigma].sup.2] Variance of returns on flows stock
The Call Option Agreement pursuant to which the Option Holders' call option period and exclusivity period have each been increased until and including September 18, 2009.
Given the 60 per cent agreement on the call option, Zetland's latest strategy seems sure to win the day.
On the date the call option is issued, its strike price is not substantially below the S stock's FMV.
The cost of her call option might be $2 per share, or $200 for the contract ($2/share x 100 share bundle).
Ferris, 1985, "The CBOE Call Option Index--A Historical Record", Journal of Portfolio Management, 12:75-83
The requirement for trust preferred securities to include a call option has been eliminated, and standards for the junior subordinated debt underlying trust preferred securities eligible for tier 1 capital treatment have been clarified.
A call option offers protection for an excess of seasonal snowfall.