Difference between revisions of "Call options"
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(Replaced content with "Call options Category:finance") Tag: Replaced |
(Replaced content with "A call option is the ''''right''''' but '''''not the obligation''''' to acquire an Asset by paying a certain sum of money on or before a certain time. * Europea...") Tag: Replaced |
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| − | + | A call option is the ''''right''''' but '''''not the obligation''''' to acquire an [[Asset|Asset]] by paying a certain sum of money on or before a certain time. | |
| − | [[Category: | + | |
| + | * European calls are only exercisable at expiration. | ||
| + | * An American call may be exercised at any time prior to expiration. | ||
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| + | As a consequence, an American call must be at least as valuable as on otherwise identical European call. | ||
| + | [[Category:mbi]] | ||
Latest revision as of 20:11, 27 August 2020
A call option is the 'right but not the obligation to acquire an Asset by paying a certain sum of money on or before a certain time.
- European calls are only exercisable at expiration.
- An American call may be exercised at any time prior to expiration.
As a consequence, an American call must be at least as valuable as on otherwise identical European call.
