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What is Understanding Call Options Explained about?
Buying call options gives the buyer the right, but not the obligation, to purchase stock at a predetermined strike price by a set expiration date. If the stock price rises above the strike price, the option becomes valuable. Call buyers profit when the stock rises significantly above the strike price. While riskier, call options can provide greater profits than buying the stock directly if the bet is correct. However, if the stock stays below the strike price, call options expire worthless and the entire in
- Author
- Nimra Bibi
- Language
- EN