call option
Definition
Formal contract between an option seller (the optioner) and an option buyer (the optionee) which gives the optionee the right but not the obligation to buy a specified contract, financial instrument, property, or security, at a specified price (called exercise price ) on or before the option's expiration date. Investors who buy call options believe the price of the underlying asset will go up, and they will be able to make a high profit from a small (marginal) investment. Opposite of put option.
Mentioned in these definitions
Popular 'Commodities & Precious Metals Trading' Terms
call option in the news
Loading...
This content can be found on the following page:
http://www.businessdictionary.com/definition/call-option.html
