Call Options

Call options come under financial contracts that allow option buyers to purchase stocks, bonds, and commodities, among various other assets at a specific price. Each call option has a specific duration of time, upon which the options become void. For option calls, any stock, bond, or commodity acts as the underlying asset.

‘Strike price’ is often associated with call options where the buyer can purchase the option at a specific price. Similarly, the time frame upon which the sale can be made is known as ‘expiration time’.

Both of these can be combined for executing a plethora of strategies. Call options are best suited for investors with limited capital who can’t afford the underlying asset of the same quantity.