meaning of call option

call option meaning in Urban Dictionary

(FINANCE) a financial by-product that entitles the dog owner buying a hard and fast quantity of X for a hard and fast price (the attack cost) by a certain day someday. If this is an equity by-product, X is known as the underlying stock.A call option enables anyone to enjoy earnings from an increase in price of a traded product without in fact buying the asset it self. As it is a choice, you're not compelled to work out it if it perhaps not beneficial to do this; however, the party that in the beginning given the option (i.e., the main one which "wrote" the option) is legitimately obligated to honor the possibility.whenever strike price of a call choice is a lot more than current market price regarding the asset (for example., its "place price"), it does not have any intrinsic price and it is "out of this cash."

call option meaning in Finance Dictionary

An option that offers the holder suitable yet not the responsibility to shop for a stated volume of the underlying tool (for example shares, indices, products an such like) at a specified cost on or before a given time.

call option meaning in Law Dictionary

DERIVATIVE contract that gives the customer just the right, not the responsibility, to shop for an UNDERLYING INVESTMENT through the vendor at a set STRIKE PRICE at, or prior to, expiry. In exchange, the client will pay owner reduced. Calls, that could be written on an easy number of economic and commodity sources, can be obtained as EXCHANGEtraded and OVERTHECOUNTER agreements, and may be organized as UNITED STATES OPTIONS, BERMUDAN OPTIONS, or EUROPEAN OPTIONS. See also PUT ALTERNATIVE.

call option meaning in Business Dictionary

Formal contract between an alternative vendor (the optioner) and an option customer (the optionee) gives the optionee the best but not the responsibility to purchase a specified contract, economic instrument, property, or protection, at a specified cost (known as exercise cost ) on or prior to the choice's conclusion day. Investors who purchase telephone call options think the cost of the underlying asset is certainly going up, and they will manage to make a high make money from a little (limited) financial investment. Opposite of place choice.

call option meaning in General Dictionary

an option to get

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  • the choice purchasing a given stock (or stock list or product future) at certain price before a given date