What does call potion mean?
The call option is a security that enables investors to buy any type of security for a fixed fee, all within a given time frame. For example, an investor may wish to buy shares of a specific stock and at a certain price, all in a certain time frame, so he or she can either hedge or protect a previously existing investment.
The call option is essentially an agreement that lets an investor, and does not oblige him or her, to by certain types of securities, like stocks, bonds, commodities, or other instruments at a pre specified price. A helpful reminder could be that the investor can choose to ‘call in’ or buy an asset. The investor profits from the service if the underlying asset gets an increase in price. |