call option

Definition

An option contract that gives the holder the right to buy a certain quantity (usually 100 shares) of an underlying security from the writer of the option, at a specified price (the strike price) up to a specified date (the expiration date). also called call.

Use call option in a sentence

You may want to have a call option available to give your self a little more wiggle room in the process.

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I had a call option on the contract, which was great because it allowed me to do a lot of different things.

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The call option was exercised by the new broker as we had communicated our desire to purchase the specific security.

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