Call option

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Call option is a financial option that allows the holder to buy the asset at some predetermined price within a specified period of time.


Definitions

According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),

Call option. An option that allows the holder to buy the asset at some predetermined price within a specified period of time.

According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),

Call option. An option to buy, or “call,” a share of stock at a certain price within a specified period.

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