Introduction to CALL option

As already mentioned in previous topics, a call option is an option contract which provides the purchasing rights to a buyer which gives the buyers privilege to purchase a particular derivative like a stock, at a certain price and these contracts come with expiry dates . The investors who purchase a call option aren’t obligated to purchase the underlying asset at the strike price.

Concept of CALL option

This means the buyer of the call option contract is capable of exercising an option to purchase the fix lot for the particular equity. The investor who buys a call option contract is required to pay the price – Option Premium to the seller or writer of the call option contract.

During expiry, a call option’s intrinsic value represents a benefit to the buyer and a cost to the seller. Remember that the call options are very likely to offset each other.

Get Website Development at affordable prices