what is call option?

User Generated

nxyvzn2014

Business Finance

Description

what is call option

User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

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

Click here for more detail


Anonymous
Just what I needed…Fantastic!

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Related Tags