One of the mysteries of the English language finally explained.
An option to buy assets at an agreed price on or before a particular date.
- ‘A call option gives you the right to buy, and a put option gives you the right to sell.’
- ‘The call option allows you to control the same 100 shares for substantially less than it cost to purchase the stock outright.’
- ‘By buying a call option, the investor is again making a bet that the underlying stock will be trading at a price higher than current market prices, so they're locking in the ability to buy at a cheaper rate.’
- ‘For example, a call option allows you to buy a thousand shares or a hundred shares of stock for a small amount.’
- ‘A call option that gives you the right to acquire 100 shares of Microsoft at $50 for the next three months costs about $550.’
call option/ˈkôl ˈäpSHən/
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