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- A call option and a put option are types of contracts that give the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified price within a specific period12. A call option gives the right to buy, while a put option gives the right to sell132. Call options are profitable when the price of the asset goes up, while put options are profitable when the price goes down34.Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.A Call Option gives the buyer the right, but not the obligation to buy the underlying security at the exercise price, at or within a specified time. A Put Option gives the buyer the right, but not the obligation to sell the underlying security at the exercise price, at or within a specified time.www.commsec.com.au/support/help-centre/options…
Key Takeaways
- A call option gives the holder the right, but not the obligation, to buy an underlying asset at a specified price (strike price) within a specific period (expiration date).
www.wallstreetmojo.com/call-options-vs-put-options/The right to buy is call option while when the right relates to selling, it is a put option. Calls allow you to make money when the value of financial products is going up. On the other end, puts will reap money when the stock price of the underlying asset are going down.keydifferences.com/difference-between-call-and-pu…If you expect the price of a stock to rise, buying a call option is the better choice — if you’re right and the stock price goes up, you’ll be able to purchase the stock for less than it’s worth. If you expect the price to decrease, it’s better to buy a put option, so you can sell the stock for more than it’s worth.www.gobankingrates.com/investing/strategy/call-v… - People also ask
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