Factbites
 Where results make sense
About us   |   Why use us?   |   Reviews   |   PR   |   Contact us  

Topic: Call option


Related Topics

  
  Buy Call Options / Long Call Options by OptionTradingpedia.com
Buying call options, or also known as Long Call Options or simply Long Call, is the simplest bullish option strategy ever and is a great starting point for beginner option traders.
Before expiration, the bid/ask spread of the call options is the breakeven point.
Call option premium is subjected to time decay, so the value of the option actually depreciates daily until expiration.
www.optiontradingpedia.com /free_buy_call_options.htm   (2192 words)

  
  NationMaster - Encyclopedia: European call option
A call option is a financial contract between two parties, the buyer and the seller of the option.
Call options can be purchased on many financial instruments other than stock in a corporation - options can be purchased on futures on interest rates, for example (see interest rate cap) - as well as on commodities such as gold or crude oil.
A call option should not be confused with either Incentive stock options or with a warrant.
www.nationmaster.com /encyclopedia/European-call-option   (744 words)

  
  Call option - Wikipedia, the free encyclopedia
A call option is a financial contract between two parties, the buyer and the seller of this type of option.
Call options can be purchased on many financial instruments other than stock in a corporation - options can be purchased on interest rates, for example (see interest rate cap) - as well as on physical assets such as gold or crude oil.
A call option should not be confused with a stock option (or with a warrant).
en.wikipedia.org /wiki/Call_option   (930 words)

  
 Call and Put Options
A call option gives the owner of the option the right to purchase a security at a pre-specified strike price for a specific period of time.
The option adjusted spread is the spread to the risk free government bond with the same maturity once the option component has been taken out.
Generally these are structured as a bond which have the option to convert the bond into the common stock of the company which has issued the bonds.
www.bestwaytoinvest.com /options   (335 words)

  
 Option - Wikipedia, the free encyclopedia
Most often the term "option" refers to a type of derivative which gives the holder of the option the right but not the obligation to purchase (a "call option") or sell (a "put option") a specified amount of a security within a specified time span.
Additional to the intrinsic value an option has a time value, which decreases the closer the option is to its expiry date.
Employee stock options are also widely used as a compensation vehicle for employees and, in particular, senior executives of publicy traded corporations.
en.wikipedia.org /wiki/Option   (2311 words)

  
 Call option   (Site not responding. Last check: )
A call option is a financial contract between two parties, the buyer and the seller of the option.
The stock option, the option to buy stock in a particular company, is the most widely-known call.
However options are traded on many other financial instruments - such as interest rates (see interest rate cap) - as well as on physical assets such as gold or crude oil.
www.brainyencyclopedia.com /encyclopedia/c/ca/call_option.html   (559 words)

  
 Call Options
When you purchase a call option you will need to know 3 things: The price at which you want to purchase the stock at 9strike price), which month you want the option to expire in (expiration month), and how much you are going to pay for the option (the premium).
If you sold a 25.00 naked call and the stock closes at 29.00, then if someone decides to exercise their contract and buy the stock you will have lost 4.00 per share minus the option premium you received when you sold the naked call.
A call seller has the obligation to sell 100 shares of stock per contract at the option strike price to the person who bought the option contract, but only if that person chooses to exercise the call option.
www.writingputs.com /Calls.htm   (1163 words)

  
 NOVA Online | Trillion Dollar Bet | Site Map
A stock option is a contract that gives you the right—but not the obligation—to buy or sell a stock at a pre-specified price (the exercise price) for a pre-specified time, that is, until the option "expires." If the option gives you the right to buy shares of a stock, it is a call option.
Options are usually sold in sets of 100 (which would allow you to buy or sell 100 shares of the underlying stock at a certain price for the duration of the option).
The value of the call option is now much greater than when you bought it, and you could sell it to someone.
www.pbs.org /wgbh/nova/stockmarket/formulaoptions.html   (668 words)

  
 About Option Line
Option Line consultants refer each caller to a pregnancy resource center in her area for answers to questions about abortion, pregnancy tests, STD's, adoption, parenting, medical referrals, housing, and many other issues.
Option Line is a call center located in Columbus, Ohio, formed as a joint venture between Care Net and Heartbeat International.
All centers to which calls are directed pledge to uphold the standards in our Commitment of Care.
www.optionline.org /about.html   (197 words)

  
 Options Strategy Evaluation Tools by Peter Hoadley - FAQs
Options on stock indices: Set the continuous dividend yield for the index option equal to the average dividend yield on the stocks in the index.
Options on futures: The pricing of options on futures can be correctly handled by setting the continuous dividend yield for the option on the futures contract equal to the risk-free rate and replacing the spot price with the current futures price.
Strategy profit/loss: When an options strategy involves a position in the underlying futures contract (eg a futures call option covered by a futures contract expiring at the same time as the call) then the calculation of strategy profit/loss is different from a strategy with a position in the underlying itself.
www.hoadley.net /options/FAQs.htm   (4642 words)

  
 Call Option
If a option trader owns the underlying stock or commodity when he sells (writes) a call option contract it is known as a writing a covered call.
If the call writer, that is the seller of the option, did not hold the underlying stock or commodity, he would have an uncovered or "naked" position.
For instance, if T-bond futures were purchased at 80-00 and a call option with an 80 strike price was sold for 2-00, T-bond futures could decline to the 78-00 level before there would be a net loss in the position (excluding, of course, margin and commission requirements).
www.makestockmarketprofits.com /calloption.html   (510 words)

  
 Diageo agrees call option with General Mills 23 October 2002
On October 23, 2002, Diageo granted to General Mills a call option over 26,183,088 of General Mills' ordinary shares that are held by Diageo and, if the initial purchasers option is exercised, Diageo expects that it will grant General Mills a call option over up to an additional 2,909,232 of General Mills' ordinary shares.
The premium for the call option is $3.07 per share or an aggregate of $80,382,080.16 ($89,313,422.40 if the initial purchasers option is covered in full).
The option premium paid to Diageo will, under UK GAAP, be deferred in creditors on the balance sheet and only reflected in the profit and loss account on the exercise or lapse of the option at the end of the option period in three years' time.
www.diageo.com /en-row/NewsAndMedia/PressReleases/2002/23+Oct+2004+Call+option+with+GM.htm   (345 words)

  
 Invest FAQ:Derivatives:Stock Option Basics
This is called "writing" options and explains (somewhat) the source of options, since neither the company (behind the stock that's behind the option) nor the options exchange issues options.
If you write a Call option and own the stock that's called "Covered Call Writing." If you don't own the stock it's called "Naked Call Writing." It is quite risky to write naked calls, since the price of the stock could zoom up and you would have to buy it at the market price.
Stock index futures, stock index options and options on individual stocks all expire on this day, and because of this, trading volume is usually especially high on the stock exchanges that day.
invest-faq.com /articles/deriv-option-basics.html   (1570 words)

  
 Invest FAQ:Derivatives:Stock Option Covered Calls
A covered call is a stock call option that is written (i.e., created and sold) by a person who also owns a sufficient number of shares of the stock to cover the option if necessary.
The writer of the call option receives a premium and agrees to deliver shares (possibly from his or her holdings, but this is not required) if the option is called.
The call writer might have shares in his or her safe deposit box, or in another broker's account, or in that same broker's cash account -- this makes the investor covered, but not as far as the broker is concerned.
invest-faq.com /articles/deriv-option-covered-call.html   (792 words)

  
 Call
Options are used as both a hedging tool and a leveraging tool.
Call option writers are usually investors who own a stock that they feel rarely increases in price; they are making extra money from the option premium so long as the stock price does not increase.
As a hedge, If you buy a call option to protect a short position, your maximum gain is the short sale price less the option premium.
www.speculativebubble.com /terms/call.shtml   (193 words)

  
 WWWFinance - Option Contracts   (Site not responding. Last check: )
A call option on XYZ with a strike price of 45 and a maturity date in January will be referred to as "The XYZ 45 January calls." All exchange traded options in the U.S. expire on the saturday following the third friday of the expiration month.
A call option is a contract that gives the holder the right to buy a particular asset at a specified price (called the exercise price or strike price) within a specified period of time.
Hence, common stock is a call option on the value of the firm, with maturity date the date the bond matures and the exercise price is the par value of the bond.
www.duke.edu /~charvey/Classes/ba350_1997/options/options.htm   (9439 words)

  
 Call Option
A call option gives the buyer the right, but not the obligation, to buy the underlying security at a specific price for a specified time.
The seller of a call option has the obligation to sell the underlying security should the buyer exercise his option to buy.
The buyer of an equity call option has purchased the right to buy 100 shares of the underlying stock at the stated exercise price.
www.trader-soft.com /option-trading/option-basics/call-option.html   (143 words)

  
 Buying a call option
One of the greatest benefits of trading options on shares, as compared to trading in the actual underlying shares, is the leverage (or "gearing") that options provide, allowing you to gain exposure to greater amounts of shares for less initial cash outlay than would be possible when trading in the underlying shares.
Had you decided to close out your call option position on 16 May 2001, when GSK shares were trading at 1955p and the premium quoted for the GSK July 2001 1800p call option was 198p, you would have realised a profit of £930, a gain of 88.57% on your initial premium outlay.
The value of an option is derived from a number of factors including the relationship between the exercise price and the share price, market volatility and time to expiry.
www.liffe.com /liffeinvestor/options/buy_call.htm   (434 words)

  
 FASB: Embedded Derivatives: Evaluation of Net Settlement with Respect to the Settlement of a Debt Instrument through ...
In applying paragraph 12(c) to a put option or call option (including a prepayment option) embedded in a debt instrument, does the potential settlement of the debtor’s obligation to the creditor that would occur upon exercise of the put option or call option meet the net settlement criterion in paragraph 9(a)?
The application of paragraph 12(c) is relevant when an embedded put option or call option is not considered to be clearly and closely related to the debt host under paragraph 12(a) and related paragraph 13 or 61(d).
The debtor’s settlement of its liability by settling the debt should be considered as not involving the delivery of an asset, notwithstanding whether the creditor concurrently returns to the debtor the evidence of the debtor’s indebtedness (such as a note payable marked "paid" by the creditor).
www.fasb.org /derivatives/issueb38.shtml   (546 words)

  
 SFB 504 glossary: Options and hedging   (Site not responding. Last check: )
Options are contracts, which give the owner the right, to buy (call option) or to sell (put option) a specific amount of an underlying asset for a specific price (exercise price) only at the end (european option) or at any time prior to the specified expiration date (american option).
The opposition of the contract, the seller of the option, has the obligation, to sell (call option) or to buy (put option) the underlying asset at the exercise price if the owner exercises the option.
Covered short call (written call): A covered short call consists of holding an underlying asset and simultaneously selling a call option (short call) of this underlying asset.
www.sfb504.uni-mannheim.de /glossary/options.htm   (379 words)

  
 TheStreet.com: Call Option Buyers Return as Market Rallies
One Wall Street options trader said that on Wednesday there was a lot of short-covering as the market rebounded from the scary levels it fell to at the open.
A call option is a type of option that gives the purchaser the right, but not the obligation to buy a security for a specified price at a certain time, and is for the most part a bet the stock will go up.
With the announcement Wednesday, volume in Fairfield's options was heavier than normal, with a total of 2,090 contracts changing hands, 1,680 of which were call options, compared to overall average options volume of 720 contracts, according to McMillan Analysis.
www.thestreet.com /markets/optionsbuzzfree/1133815.html   (660 words)

  
 Call Option   (Site not responding. Last check: )
It is right, but not an obligation, to buy a currency at a specified price called the strike price, or exercise price, for a specified period of time for which the purchaser pays an option premium to the seller or writer of the call.
A currency call option is bought for speculative purposes when one expects the underlying currency to appreciate in value.
A currency call option is also used to hedge foreign currency payables; by buying call options at the appropriate strike price, one is able to lock-in a rate.
www.bsu.edu /classes/rrathina/course/unit5_7.htm   (112 words)

  
 what is a call option and other options related information   (Site not responding. Last check: )
of a call (put) option is the contractual price at which the underlier will be purchased (sold) in the event that the option is exercised.
Call Option A call option gives the buyer the right, but not the obligation, to purchase a specific foreign exchange spot contract (the underlying) at a specific price (the strike price) on or...
Stock option analysis focused on Covered Call Option strategies and LEAP option data designed for hedging investing and trading risk in the stock market through high yield screens, graphs, charts and loss...
www.nethorde.com /options/what-is-a-call-option.html   (367 words)

  
 Forex Options: Call Option   (Site not responding. Last check: )
Forex Options is your one stop source for forex options trading, news, and commentary.
A call option gives the buyer the right, but not the obligation, to purchase a specific forex contract (the underlying) at a specific price (the strike price) on or before a specific date (the expiration date).
Please note that "puts" and "calls" are separate options contracts and are NOT the opposite side of the same transaction.
forex-options.blogspot.com /2005/02/call-option.html   (126 words)

  
 About Option Line
Option Line consultants refer each caller to a pregnancy resource center in her area for answers to questions about abortion, pregnancy tests, STD's, adoption, parenting, medical referrals, housing, and many other issues.
Option Line is a call center located in Columbus, Ohio, formed as a joint venture between Care Net and Heartbeat International.
All centers to which calls are directed pledge to uphold the standards in our Commitment of Care.
www.pregnancycenters.org /about.html   (197 words)

Try your search on: Qwika (all wikis)

Factbites
  About us   |   Why use us?   |   Reviews   |   Press   |   Contact us  
Copyright © 2005-2007 www.factbites.com Usage implies agreement with terms.