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Call Option

A call option is a financial contract that gives the buyer the right but not the obligation to purchase an asset at a set price. The buyer pays a premium for this right. If the underlying asset's price is above the strike price at expiration, the option is said to be in the money and the buyer will exercise the option and purchase the asset. If the underlying asset's price is below the strike price at expiration, the option is said to be out of the money and the buyer will not exercise the option.



26 Dec 2023

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