What is Call Option? (Part 1)

Call option is a contract gives the buyer of the options the right to buy the underlying security at a particular price (i.e. strike price) on or before a certain date (i.e. expiration date).
The seller (or writer) is, in turn, obligated to sell the security should the buyer decides to exercise the option.

Call option�s price increases when the underlying stock�s price increases, and decreases as the underlying stock�s price decreases (positive relationship).
Hence, typically we will buy a Call Option if we expect a stock will go up before option expires.

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