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Call date |
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Call dateA date before maturity, specified at issuance, when the issuer of a bond may retire part of the bond for a specified call price.Call dateThe date on which a bond may be redeemed by the issuer before maturity which may be at par or at a higher value. The difference is known as the call premium.Similar MatchesPut call parity relationshipPut call parity relationshipThe relationship between the price of a put and the price of a call on the same underlying security with the same expiration date, which prevents arbitrage opportunities. Holding the underlying stock and buying a put will deliver the exact payoff as buying one call and investing the present value (PV) of the exercise price. The call value equals C = S + P - PV(k). Call premiumCall premiumPremium in price above the par value of a bond or share of preferred stock that must be paid to holders to redeem the bond or share of preferred stock before its scheduled maturity date. CallableCallableApplies mainly to convertible securities. Redeemable by the issuer before the scheduled maturity under specific conditions and at a stated price, which usually begins at a premium to par and declines annually. Bonds are usually called when interest rates fall so significantly that the issuer can save money by issuing new bonds at lower rates. Extraordinary callExtraordinary callEarly redemption of a revenue bond because the revenue source paying the interest on the bond has been eliminated or has disappeared. Covered callCovered callA short call option position in which the writer owns the number of shares of the underlying stock represented by the option contracts. Covered calls generally limit the risk the writer takes because the stock does not have to be bought at the market price, if the holder of that option decides to exercise it. Further SuggestionsConditional call optionscall option Deferred call call provision call warrant Call provision bear call spread Graduated call writing Cold calling Call Irrational call option Call to Action margin call Draw a call Noncallable First call Yield to warrant call Call money rate Geneticalliy modified organism Call Effective call price Callability Call risk synthetic long call Implied call |
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