The meaning and definition of Call Option - A cont
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Posted On: 03/16/2013 12:08:18 AM
The meaning and definition of Call Option -
A contract that gives the holder (also known as the buyer) the right — but not the obligation — to buy a fixed amount of securities at a fixed price for a fixed period of time. The option holder/buyer pays a premium to the seller for this right. If the option is exercised, the seller (also known as a writer) is obligated to sell the securities at the agreed-upon price (strike price).
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