Difference between revisions of "Call options"
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(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 |
(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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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.
