call option

Noun

Meaning

the option to buy a given stock (or stock index or commodity future) at a given price before a given date

an option to buy

Source: WordNet

Synonyms

call contract put option preemptive right anti-dilution provision board observer rights calls option contract involving stock rights to subscribe for new shares share option right of first refusal and co-sale derivative contract between two parties right to sell shares at a stated price option contract option to buy assets

Show all synonyms

Antonyms

put option

Hypernyms

option stock option

Examples

A call option is a financial contract that give the option buyer the right, but not the obligation, to buy a stock, bond, commodity other asset or instrument at a specified price within a specific time period. Source: Internet

Because stock is akin to a call option on a firm's assets, this lost volatility will hurt the stock price of distressed banks. Source: Internet

Eventually what he'd be left with is something similar to a call option on the underlying stock, acquired at a very low price. Source: Internet

In order to hedge its exposure from being short the call option, UBS also purchased 1 million of LTCM shares. Source: Internet

But if the index rallies, the investor would still be able to buy 100 shares at $205 a share and sell them for a profit, even after deducting the cost of the call option. Source: Internet

LTCM purchased a call option on 1 million of their own shares (valued then at $800 million) for a premium paid to UBS of $300 million. Source: Internet

Close letter words and terms

call on the carpet call one on the phone call one's bluff call originator call out call over