|
|
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.
Thus, the buyer of one QQQ April 30 call option has the right to
purchase 100 shares of QQQ at $30 up until April expiration. The
buyer may do so by filing an exercise notice through his
broker prior to the expiration date of the option. All calls
covering QQQ are referred to as an "option class." Each
individual option with a distinctive trading month and strike
price is an "option series." |
|
|
|
 |
|
