Home > Term: call option
call option
A contract that entitles the buyer the right, but not the obligation, to purchase an underlying futures contract at a stipulated basis or strike price at any time up to the expiration of the option. The buyer pays a premium to the seller for this contract. A call option is bought with the expectation of a rise in prices. See put option.
- Part of Speech: noun
- Industry/Domain: Agriculture
- Category: Agricultural programs & laws
- Company: USDA
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