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Call an option |
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Call an optionTo exercise a call option.Call an option Similar MatchesShare optionShare optionAn incentive given to company directors and employees to promote loyalty and commitment.The employee is offered an option to buy shares in the company at a fixed price, at or below the then market price. The option specifies the time during which the employee can exercise the right, and often this will be a period of years. If the company's share price rises in that period, the employee can exercise the option, acquire the shares at the option price, and immediately sell them for a capital gain. If the company's shares do not rise, the employee may take the view that the option is not worth exercising. The option mechanism thus gives the employee discretion.Tax liabilities may be reduced on gains where schemes are approved by the Inland Revenue. Options contractOptions contractA contract that, in exchange for the option price, gives the option buyer the right, but not the obligation, to buy (or sell) a financial asset at the exercise price from (or to) the option seller within a specified time period, or on a specified date (expiration date). Uncovered optionsUncovered optionsSee: Naked options Spread optionSpread optionA position consisting of the purchase of one option and the sale of another option on the same underlying security with a different exercise price and/or expiration date. Covered or hedge option strategiesCovered or hedge option strategiesStrategies that involve a position in an option as well as a position in the underlying stock, designed so that one position will help offset any unfavorable price movement in the other, including covered call writing and protective put buying. Related: Naked strategies Further SuggestionsBargain purchase price optionCurrency option abandoned option Lockup option Doubling option Over the Counter Option Put option Asian option Put an option Real option American style option Option writer option premium Lease With Option To Purchase Index option call option European style option Currency put option Knock out option Tax timing option Irrational call option Barrier options Single option Option mutual fund Tax deferral option |
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