A DERIVATIVE contract that gives the buyer the right, but not the obligation, to purchase an UNDERLYING ASSET from the seller at a set STRIKE PRICE at, or before, expiry. In exchange, the buyer pays the seller a PREMIUM. Calls, which can be written on a broad range of financial and commodity references, are available as EXCHANGEtraded and OVERTHECOUNTER contracts, and can be structured as AMERICAN OPTIONS, BERMUDAN OPTIONS, or EUROPEAN OPTIONS. See also PUT OPTION.
What is CALL OPTION?
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