Call Option

Call Option

by Richard C. Wilson & Family Offices Group Association Team

Family Office Definition: Call Option

Call Option definition:  A Call Option gives the holder the right to buy a stock at a specified strike price during the term of the option.  If the stock price rises above the call strike price, the holder of a call option can buy the stock at the agreed upon strike price and immediately sell the stock at its higher market price for a gain on the sale.

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