Primary navigation:

QFINANCE Quick Links
QFINANCE Reference

Home > QFINANCE Dictionary > Definition of call option

Definition of

call option

Stockholding & Investments

option to buy stock an option to buy stock at an agreed price or before a particular date.

Related definitions of "call option"

Recommended Further Reading (Term count)
  • Using Structured Products to Manage Liabilities
    by Shane Edwards
    Only a decade ago, the use of structured products (SPs) was largely confined to sophisticated institutions that used them for risk management purposes. Now SPs are embraced across the client spectrum and are owned by millions—from retail individuals investing in capital-protected equity products, to global corporations that tailor SPs to meet their often complex and highly specific liability management needs.In the liability management arena,...
  • Borrowing Costs and Capitalization
    The costs of borrowing are primarily made up of interest and issuance expenses. The interest rate assigned to a particular debt instrument is based on the level of default risk assumed by the investor. Several rating agencies assess the default risk of public debt issuances and provide a rating that is indicative of credit quality. The credit quality is greater for secured/collateralized senior debt than for unsecured subordinated debt issued by...
  • Understanding Hedge Ratios
    This checklist describes what a hedge ratio is and how it is used.
  • Employee Stock Options
    by Peter Casson
    Employee stock options are a component of the compensation package of many employees and executives. As well as providing a mechanism for linking pay with the performance of the company’s stock price, stock options can facilitate the recruitment and retention of employees. The effectiveness of stock option compensation derives from the basic characteristics of options and from particular features found in many employee stock options. This...

Definitions of ’call option’ and meaning of ’call option’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’call option’ and other financial terms with our online QFINANCE Financial Dictionary.

Back to top