call option
2
7.7
- noun
- /kɔl ˈɑpʃən/
- Specialized
:
opción de compra
- He explained how a call option gives the buyer the right to purchase an asset at a set price before the expiration date.
- payoff on a call option
- call option on a stock
- call option value
Now there are two types of options, call options and put options.
- Now there are two types of options, call options and put options.
- I also bought a NEO call option on Robin Hood.
- So warrants are worth a bit less than call options for this reason.
- Another simple contract, which is kind of dual to call option is a put option.
- It's not like pricing a call option on a on a well known underlying.
Examples
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When investing, many traders purchase a call option to potentially profit from an anticipated rise in stock prices.
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Stockholders essentially have a call option on the business.
Blog text (30) -
OK, so this is the call option price, right?
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If you buy a call option and the stock goes up, you will make hundreds of percent.
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Now there are two types of options, call options and put options.
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And now everyone is talking about call options.
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However, the price of the call option is constantly changing.
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In essence, the company bought a portfolio of call options which later allowed it to expand into new technology when necessary.
Academic text (1991) -
Since a call option's value increases with the value of the underlying asset, a profitable call option is highly valuable and thus worth creating.
Academic text (1991) -
I'm buying call options.
Synonyms
256
7.4
A right to buy or sell something at a set price before a set time
42
8.1
A demand for payment, or the right to buy something at a set price
32
4.8
A right to buy company shares later at a fixed price, often given to employees
Antonyms
- Specialized
3
8.3
A contract that gives you the choice to sell an investment at a fixed price within a set time
How Directional
Surface Forms
Morphology
The noun 'option' already signals a financial right to buy or sell, so the phrase is partly compositional (a type of option). However, the specialized financial sense of 'call' meaning 'the right to buy' is not predictable from general meanings of 'call' and is jargon-specific, so a B1 learner who only knows the ordinary meanings of the constituents would likely not infer the exact contractual meaning without exposure.
Etymology
Call option comes from the words call and option. Imagine a ticket that lets you call, meaning 'ask for', a share at a fixed price before a certain day. Because option means you can choose to use the ticket or not, a call option is 'a contract that gives the buyer the 'right' to 'buy' an asset at a set price within a time period'.