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 call options. More on financial markets: Asymmetric Information, Moral Hazard.

   


© 2019 MBA Brief - Last updated: 25-8-2019  -  Privacy   |   Terms