Call Option

A call option is sometimes referred to as the “vanilla call”.

This type of option gives a buyer the right, but not the obligation, to buy a defined number of underlying assets at a defined price (the so-called “strike price”) at a pre-determined time (in the case of European option) or within a pre-determined timeframe (in the case of an American option).

Unlike a “put option”, a call option is not a selling right, but a buying right.

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