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call option
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call option
often abbreviated as "an option"

  the option to buy a given stock (or stock index or commodity future) at a given price before a given date
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Strongly Associated with:   put option
The term call option is like a stock option except that it can apply to other securities in addition to stocks. A call option is often just called a call or an option or (in the case where the security is a stock) a stock option.

Exact specifications may differ depending upon the style of option. For example, a typical American option can be exercised at any time during its life, but a typical European option can be exercised only at the option’s expiration date.

A call option is different than an incentive option (or warrant) though this instrument is also typically called an option.  An incentive option is a promise (typically given to executives of a company) that they can purchase new shares of stock at a given price. They have incentive to increase the price of the company’s stock since they will make money if it rises.
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Associated words [difficulty]:   call option , stock option [9]
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Most commonly used in these subjects:   Business, Personal Finance, Sports
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