The premium is the maximum amount that a buyer will agree to suffer as a loss. If the price of the share increases in the following month, the buyer can exercise this call option. If the share’s price does not increase beyond the strike price of Rs. 5000, the option expires after th...
As a result, the option you bought for $2 is now worth $5 (that is, the current price, $60, minus $55, your contract’s strike price). At this point you can do one of two things: Assuming you have the money in your account and you want to take on the risk of owning the ...
What is the definition of call option?Basically, it’s a contingent purchase agreement between someone who owns a security and someone who wants to purchase it. The current owner of the securities is paid a premium and agrees to allow the prospective owner to purchase the securities at specific...
What Is a Call Option?定义Call options are financial contracts that give the option buyer the right, but not the obligation, to buy a stock, bond, commodity or other asset or instrument at a specified price within a specific time period. The stock, bond, or commodity is called the ...
What Is a Call? A call, in finance, will usually mean one of two things. Acall optionis a derivatives contract giving the owner the right, but not the obligation, to buy a specified amount of anunderlying securityat a specified price within a specified time. ...
If the stock's market price rises above the strike price, the option is considered to be “in the money.” An in the money call option has “intrinsic value” because the market price of the stock is greater than the strike price. The buyer has two choices: First, the buyer could cal...
call option ：看涨期权．（买方期权）put option ：看跌期权（卖方期权）
A call option is considered Out Of The Money ( OTM ) when the call option's strike price is higher than the prevailing market price of the underlying stock. It confers you the right to buy the underlying stock at a HIGHER price than the prevailing stock price and hence it has no ...
A call option is a contract that gives the option buyer the right to buy an underlying asset at a specified price within a specific time period.
Out of the Money:Incall option, if the exercise price of the underlying security is above its market price, then the option is said to be 'out of the money, whereas in the put option, if the strike price is below the market price of the security, then it is said to be as ‘out...