Call Option

   

Definition: a Call Option is one of the two main types of options.
An option is a legal agreement (contract) between 2 parties, in which one party acquires the right to trade an underlying security, at an agreed price, on or before a particular date.
For example, an underlying security could be 100 shares in company X.
The right to buy the security is called a "call option" while the right to sell is called a "put option".


   
   

More on financial markets: Asymmetric Information, Moral Hazard.



   

MBA Brief offers accurate and concise definitions of MBA concepts, frameworks, methods and models.

We love to keep things really short, but provide links to learn more about your subject and to similar concepts.





© 2022 MBA Brief - Last updated: 29-5-2022  -  Privacy   |   Terms