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 ?
The buyers who buy deep OTM call options, that is, whose market price is substantially less than the strike price, are bullish on the underlying.
S issues E a call option in connection with E's performance of services.
The models are relatively good at predicting whether a bond includes a call option.
3, 2002, when the stock's FMV is $100, it writes a 12-month call option on the 100 shares with a $110 strike price.
99 percent of the total number of shares and votes in CameronTec (the "Call Options"), each Call Option granting a right to purchase one existing share in CameronTec from Orc Group against payment of SEK 146.
ON Nordic regarding the decision of Finnish energy company Fortum Corporation to use its call option (Call Option Agreement) to acquire all shares of E.
When the Fund writes a call option on an individual stock held in the Equity Component, it will ordinarily do so with respect to approximately 70% of the value of the position.
M2 EQUITYBITES-February 13, 2018-Kinnevik announces grant of 200,000 call options to CEO
NORDIC BUSINESS REPORT-February 13, 2018-Kinnevik announces grant of 200,000 call options to CEO
NEW YORK -- Structured Asset Trust Unit Repackagings (SATURNS), AIG Capital Security Backed Series 2002-11 (the "Trust") (New York Stock Exchange Ticker Symbol "MKS"), announced today that it has received a notice of intent to exercise 39,332 Call Options representing the right to call $39,332,000 aggregate principal amount of the 7.
NEW YORK -- Structured Asset Trust Unit Repackagings (SATURNS), Goldman Sachs Group Debenture Backed Series 2003-6 (the "Trust") (New York Stock Exchange Ticker Symbol "DKP"), announced today that it has received a notice of intent to exercise 25,000 Call Options representing the right to call $25,000,000 aggregate principal amount of the 6.
Hufvudstaden AB (STO:HUFVA) announced today that it has been informed that all members of the group management have been offered and have accepted to purchase, at market terms, call options entitling to shares in Hufvudstaden.