Categories: Product Development
An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument at a specified price within a specific time period. (Source Investopedia)
Definition of "Call Option" by Chat GPT: A call option is a financial contract that gives the holder the right, but not the obligation, to buy an underlying asset at a specified price within a certain time frame. The buyer of a call option pays a premium to the seller in exchange for this right. If the price of the underlying asset rises above the specified price (strike price) before the option expires, the holder can exercise the option and buy the asset at the lower strike price, potentially earning a profit.
« Back to Glossary Index