What Is a Call Option? A call option is a contract that gives the buyer of the option the right to purchase a security, such as a specific stock, at a specific price (referred to as the strike price).

Jason Fernando is a professional investor and writer who enjoys tackling and communicating complex business and financial problems. Somer G. Anderson is CPA, doctor of accounting, and an accounting ...

A put option is a financial contract that provides an investor the right (but not obligation) to sell a stock at a designated price prior to an expiration date. Learn more about put options and how ...

Call and put options give you the right to buy and sell shares of stock at a set price during a specific period. You pay a nonrefundable premium in both cases, which you lose if you don't exercise the ...

Learn about call options providing the right to buy assets and call auctions setting prices, both crucial in finance and investment strategies.

When you purchase an options contract, you're purchasing the right to buy or sell a stock (or other security) at a set price. Many, or all, of the products featured on this page are from our ...

Options trading might sound complex, but there are basic strategies that most investors can use to improve returns, bet on the market's movement, or hedge existing positions. Covered calls, collars, ...

Looking for the best options trading courses? Try Benzinga’s Proprietary Options Trading Service and get SMS & Email alerts. An option contract gives the holder the right, but not the obligation, to ...

A call option is a contract that gives you the right but not the obligation to buy a specified asset at a set price on or before a specified date. The cost of buying a call option is known as the ...

Editor’s note: This article uses a simplified example to illustrate how a lattice model works. In the exhibits, the option term is only four years—much shorter than the 10-year life of a typical ...

Opportunity cost is the missed gain from not choosing a better option. Calculating future investment opportunity costs is complex and not always precise. Consider opportunity costs to optimize ...