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).

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A call option contract gives the buyer the right, but not the obligation, to buy shares of a stock or bond at a stated price on or before the contract’s expiration date. A single call option contract ...

Yes, American call options can be exercised at any time before expiration, while European options can only be exercised on the expiration date. An option gives you the right to buy or sell 100 shares ...