exercising a previously agreed upon right to purchase commodities or financial paper
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Call option Definition from Language, Idioms & Slang Dictionaries & Glossaries
call option
n
1. an option to buy
2. the option to buy a given stock (or stock index or commodity future) at a given price before a given date [syn: call]
[ant: put option]
Noun
1. an option to buy
(hypernym) stock option
2. the option to buy a given stock (or stock index or commodity future) at a given price before a given date
(synonym) call
(antonym) put option, put
(hypernym) option
(part-holonym) straddle, span
Call option Definition from Business & Finance Dictionaries & Glossaries
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.
Copyright © 2000, Campbell R. Harvey. All Rights Reserved.
A call option gives the owner the right, but not the obligation, to buy the underlying stock at a given price (the strike price) by a given time (the expiration date). The owner of the call is speculating that the underlying stock will go up in value, hence, increasing the value of the option. The purpose can be to speculate with the option (hope it goes up and sell for a profit), to invest in the underlying stock at a locked in price if the stock price goes high enough, or to generate income. Each option contract equals 100 shares of stock. For example, an AAA MAR 65 call, would give the owner the right to buy 100 shares of AAA at $65 (strike price) per share between now and the third Friday in March (expiration date).
An option in a lease- such as a purchase or a renewal option- that is exercised at the discretion of the lessee- not the lessor.
eg: I could sell to someone the right to buy my 100 shares of IBM at any time during the next four months(expiration date) at a price of $55(strike price) per share, this is called a call option.
seller, here is me, is called option writer.
seller, here is me, is called option writer.
Call option Definition from Encyclopedia Dictionaries & Glossaries
A call option, often simply labeled a "call", is a financial contract between two parties, the buyer and the seller of this type of option. The buyer of the call option has the right, but not the obligation to buy an agreed quantity of a particular commodity or financial instrument (the underlying) from the seller of the option at a certain time (the expiration date) for a certain price (the strike price). The seller (or "writer") is obligated to sell the commodity or financial instrument should the buyer so decide. The buyer pays a fee (called a premium) for this right.
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Call option Definition from Law Dictionaries & Glossaries
The right to purchase stock at a specified (exercise) price within a specified time period.
Courtesy of the 'Lectric Law Library.