Investor Glossary-callInvestor Glossary-callInvestor Glossary-callInvestor Glossary-callInsightful 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

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


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