Call option
By Jude Wallis
A call option gives its buyer the right, but not the obligation, to buy an underlying asset at a fixed strike price by a stated expiry. The buyer pays a premium for that right.
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At expiry, per-share intrinsic value is the greater of spot minus strike and zero. Profit subtracts the premium paid. A call can finish in the money and still lose money if intrinsic value is smaller than the premium.
How a call option works is the explainer. The call option calculator is the expiry payoff. A put option is the right to sell.