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Investments glossary

Call Option Definition


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Quotes of the day:

Old is gold, but new is platinum.

— Amit

Call options are financial contracts that give the option buyer the right, but not the obligation, to buy a stock, bond, commodity or other asset or instrument at a specified price within a specific time period. The stock, bond, or commodity is called the underlying asset. A call buyer profits when the underlying asset increases in price.

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