Call Option

A call option is a type of financial agreement that provides an investor with the opportunity, though not the obligation, to purchase an underlying security at a predetermined price during a specified period. When the option reaches its expiration date, the investor has the choice to exercise the option and acquire the underlying asset or let the option expire without taking any action. Call options are traded as derivatives on exchanges and can be utilized for various purposes such as speculation, income generation, or the implementation of hedging strategies.