- call option
- An option that gives the buyer the right, but not the obligation, to purchase ( go " long") the underlying futures contract at the strike price on or before the expiration date. Chicago Board of Trade glossary————A contract giving the buyer the right to purchase something within a certain period of time at a specified price. The seller receives money (the premium) for the sale of this right. The contract also obligates the seller to deliver, if the buyer exercises his right to purchase. The CENTER ONLINE Futures Glossary————A contract, or a provision in a contract, that gives its holder the right to buy an underlying security, commodity, or currency before a certain date. The option to purchase is for a predetermined price called the strike price. When the call option is a provision in a contract defining a transaction such as a bond or a loan, it is sometimes called a call feature. Options are often used in hedging. American Banker Glossary————An option contract that gives its holder the right (but not the obligation) to purchase a specified number of shares of the underlying stock at the given strike price, on or before the expiration date of the contract. Bloomberg Financial Dictionary————A contract between a buyer and seller in which the buyer pays a premium and acquires the right, but not the obligation, to purchase a specified futures contract at the strike price on or prior to expiration. The seller receives a premium and is obligated to deliver, or sell, the futures contract at the specified strike price should a buyer elect to exercise the option. Also see American Style Option and European Style Option. Chicago Mercantile Exchange Glossary————An option that gives the holder the right, but not the obligation, to buy an asset at a given price on or before a given date. Dresdner Kleinwort Wasserstein financial glossary————A call option confers the right but not the obligation to buy stock, shares or futures at a specified price within a predetermined time period. The buyer ( taker) pays the seller ( grantor) a premium for this. Exchange Handbook Glossary————An option that gives the holder the right to buy shares at a specified price on a specified date in the future. It is an option to buy that doesn't have to be exercised. Financial Services Glossary————An option that provides the right but not the obligation to buy the underlying security. LIFFE————It is an option that gives the buyer the right to buy an underlying asset at a future date at a specified price. London Stock Exchange Glossary————Gives its buyer the right to buy the underlying value at a fixed price before a specified expiration date. Call buyers hope the price of the stock will rise. Call sellers hope the price will stay the same or go down. NYSE Euronext Glossary
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call option UK US noun [C] (also call)► FINANCE, STOCK MARKET an agreement that gives an investor the right to buy a particular number of shares, or other financial assets, at a fixed price and before a fixed date: »The company's call options were among the most actively traded.
use/exercise a call option »If you wish to exercise your call option, call your broker and he or she will make the necessary arrangements.
Financial and business terms. 2012.
