Call Option

August 26th, 2017 by Kara in

A contract permitting the owner to buy a financial asset at a specified price (strike price).  The owner has a specific date or a period of time during which the owner may decide whether or not to exercise the option. The owner of a call option hopes that the stock price rises relative to the strike price. This allows the owner to purchase the stock at a price below market value, generating profit.  A call option is the opposite of a put option.

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