A study on call_and_put_options

Jun 28th, 2015
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A. T. Still University
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A call option is a financial contract between two parties, the buyer and the seller of this type of option. Often it is simply labeled a "call". The buyer of the option has the right but not the obligation to buy an agreed quantity of a particular commodity or financial instrument (the underlying instrument) from the seller of the option at a certain time for a certain price (the strike price). The seller (or "writer") is obliged to sell the commodity or financial instrument should the buyer so decide. The buyer pays a fee (called a premium) for this right.

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Call option - Wikipedia, the free encyclopedia1 of 3http://en.wikipedia.org/wiki/Call_optionCall optionFrom Wikipedia, the free encyclopedia.A call option is a financial contract between twoparties, the buyer and the seller of this type of option.Often it is simply labeled a "call". The buyer of theoption has the right but not the obligation to buy anagreed quantity of a particular commodity or financialinstrument (the underlying instrument) from the sellerof the option at a certain time for a certain price (thestrike price). The seller (or "writer") is obliged to sellthe commodity or financial instrument should the buyerso decide. The buyer pays a fee (called a premium) forthis right.The buyer of a call option wants the price of thecommodity/instrument to rise in the future; the sellereithers expects that it will not, or is willing to give upsome of the upside (pro

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