CALL options

A call option or "call" is a financial instrument that gives the holder the right, but not the obligation, to buy a specific underlying asset (e.g. a stock) at a predetermined price (the exercise price) within a certain period of time.

A call is usually purchased by investors who expect the underlying asset to rise in price, either to protect against losses or to profit from rising prices. If the underlying asset actually rises, the value of the call increases and the holder can sell it for a higher price or exercise it to buy the underlying asset at the exercise price. However, if the underlying asset falls or remains stable, the call may expire worthless and the buyer loses the premium paid.

Calls are often used as part of option strategies to hedge portfolios or to profit from market volatility.