what is call option?

Business & Finance
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what is call option

Dec 20th, 2014

The Right Answer is:-

Call Option is security that gives the owner the right to buy 100 shares of a stock or an index at a certain price by a certain date. That "certain price" is called the strike price , and that "certain date" is called the  . 

A call option is defined by the following 4 characteristics:

  • There is an underlying stock or index
  • There is an expiration date  of the option
  • There is a strike price of the option
  • The option is the right to BUY the underlying stock or index. This contrasts to a put option, which is the right to sell the underlying stock

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Dec 20th, 2014

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Dec 20th, 2014
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Dec 20th, 2014
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