Call Option
/ˈkɔːl ˈɒpʃən/
Definitions
- (n.) A contract granting the buyer the right, but not the obligation, to purchase an asset at a specified price within a set time.
The investor purchased a call option to buy shares at $50 each before the expiration date.
Forms
- call options
Related terms
See also
Commentary
Call options are widely used in securities and derivatives law; clarity in specifying strike price and expiration is crucial to avoid disputes.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.