Strike Price What is a Call Option Strike Price? Related Terms: What are Call Options? What are Put Options? How To Buy A Call ACall Option Strike Priceis the price at which the holder of the call option can exercise, or buy, the underlying stock. ...
So how do you determine a call option buyer’s profit? If you're exercising the option, start with the price of the underlying security; subtract the strike price, the option's premium, and any transactional fees; and you arrive at your option's profit, or the intrinsic value. The strik...
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The call option holder’s biggest risk is the premium he paid for the call option. The premium price depends on the strike price, stock price, expiration date and volatility of the stock. In general, the higher the strike price is relative to the market price of the underlying security, t...
A definition of the term "call option" is presented. It refers to a contract to buy a certain number of shares at a stated price (the strike price) within a specified period of time. A call option will be exercised when the spot price rises above the strike price. If it is not ...
called thestrike price, before a specific date, the contract maturity date. Although a call-option gives the option owner the right to purchase the securities, he is not obligated to exercise his call on or before the contract matures. He simply has the right, or option, to purchase the ...
Call option. Buying a call option gives you, as owner, the right to buy a fixed quantity of the underlying product at a specified price, called the strike price, within a specified time period. For example, you might purchase a call option on 100 shares of a stock if you expect the ...
Call Option Definition: ACall Optionis security that gives the owner the right tobuy100 shares of a stock or an index at a certain price by a certain date. That "certain price" is called thestrike price, and that "certain date" is called theexpiration date. A call option is defined by...
Definition (Call Option)A call option gives the investor the right (not the obligation!) to buy an underlying asset at an agreed upon price (the strike price) at a date in the future (the expiration date) Before we discuss a Call Option in detail we give some Option Terminology: Premium...
A call option is in the money (ITM) if the market price is above the strike price. A put option is in the money if the market price is below the strike price. An option can also be out of the money (OTM) or at the money (ATM). ...