TeachMeFinance.com - explain Call option
Call option The term 'Call option ' as it applies to the area of agriculture can be defined as ' A contract that entitles the buyer the right, but not the obligation, to purchase an underlying futures contract at a stipulated basis or strike price at any time up to the expiration of the option. The buyer pays a premium to the seller for this contract. A call option is bought with the expectation of a rise in prices. See put option'.
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