meaning of Call Spread

Call Spread meaning in Finance Dictionary

The simultaneous acquisition (purchase) of a call at one exercise price and purchase (purchase) of another telephone call at a higher workout cost.

Call Spread meaning in Law Dictionary

n SOLUTION place developed by exchanging CALL OPTIONS with similar expiry day but various ATTACK PRICES (in other words., the buyer of a call spread purchases a closertothemoney call choice and offers a farther outofthemoney call choice (a bullish strategy), owner of a call spread does the reverse (a bearish strategy)). The spread restricts the gain or LIABILITY to a location defined by the two hits. See also BULL SPREAD, BEAR SPREAD, place SPREAD.