Investor Glossary-callInvestor Glossary-callInvestor Glossary-callInvestor Glossary-callInsightful stock market charts - Click here
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


The HTML to link to this page

A call is a type of option contract. A call option gives the call owner the right (but not the obligation) to buy the specified asset at a specific price, or exercise the option. Numerous call options are publicly traded, for various assets, expiration months, and strike prices. A call can be used for hedging or for speculation. An American call can be exercised any day until maturity while a European call option can only be exercised on the expiration date. The exchange traded call option is usually an American style option. The cost to buy the right a call provides is the price of the call. A call will be exercised at a profit by the holder at expiration (if not sooner) when the market price of the asset is higher than the strike price of the call less the cost and commissions of buying the call.

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

Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | 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