Investor Glossary-call optionInvestor Glossary-call optionInvestor Glossary-call optionInvestor Glossary-call optionInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Call Option

The HTML to link to this page
 

A call option is an option contract that gives the owner (also called the buyer or holder) the right to buy (or "call") a fixed amount of an underlying security at a stated price within a specified period of time. The owner of a call option has the right to call the security away from the option writer (seller) at a fixed price called the exercise or strike price. The writer of the call option is obligated to sell the security at a fixed price to the option holder if the holder of the call option chooses to exercise the call. An investor who is long a call option has the right to buy the underlying security, while an investor who is short a call option has an obligation to sell that security. A call option holder who exercises the call option will receive 100 shares of the underlying security.



Rate this call option definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: reverse mortgage, required rate of return, per diem, debt service coverage, phantom income, open position, labor relations, covered put, APR, deferred revenue, annual return, balance sheet, ex-dividend, FICO score, implied volatility, irrevocable trust, 144a, dividends payable, LIBOR, real GDP, current ratio, VIX, quality assurance, Zero Cost Collar, option premium, class C shares, wholly-owned subsidiary, EBITDA, command economy, deferred tax, 1031 exchange, FTSE, stock split, 1035 exchange, ex-dividend date, inflation, retained earnings, minority interest, stock market close, Key Rate Duration, average price per share, cancelled check, risk management, diluted share, margin rate, limit order, 401a, liquidity ratio, in escrow


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use