A call option to buy AAPL at $335 when AAPL is trading at $340 is "in-the-money" $5 so you know the price will be at least $5. You might find this option to actually be trading at $6. That extra $1 is called the time value or risk premium and it represents the extra ...
c. An option to buy a certain quantity of a stock or commodity for a specified price within a specified time. d. A demand for payment due on stock bought on margin when the value has shrunk.Phrasal Verbs: call back 1. To communicate the need for (someone) to return from one situati...
Furthermore, you could buy or short call and/or put options across a multitude of strike prices! Yes, there isn't just one call option or one put option to trade on each stock, there can be tens of different strike prices to choose from for both put and call options. As such, ...
12. the option to buy a given stock (or stock index or commodity future) at a given price before a given date Verb 1. assign a specified, proper name to; "They named their son David" "The new school was named after the famous Civil Rights leader" ...
Put Option Example: If Ford Motor Company (NYSE: F) shares are trading at $11 each, an investor who expects the stock price to drop can buy a put option in an attempt to profit. Suppose the strike price of the put option is $9 and the expiration date is in three weeks. The option...
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The meaning of CALL is to speak in a loud distinct voice so as to be heard at a distance : shout. How to use call in a sentence. Synonym Discussion of Call.
You approach the owner and talk about an option to buy the house in the future. You and the house owner agree to the following contract. The contract will expire 1 year from today. The selling price of the house will be $210,000. ...
For instance, 1 ABC 110 call option gives the owner the right to buy 100 ABC Inc. shares for $110 each (that's the strike price), regardless of the market price of ABC shares, until the option's expiration date. Suppose ABC shares are trading at $100 today—the owner of the ABC ...
as opposed to the bullish outlook of a call buyer. The purchaser of a call option pays a premium to the writer for the right to buy the underlying at an agreed-upon price should the price of the asset be above the strike price. In this case, the option seller would get to keep the...