A call is an option contract that gives the holder the right, but not the obligation, to buy a certain amount of the underlying security at a certain price for a certain time.
The indicated price is known as the strike price and the indicated time during which the sale can be made is the expiration or time to maturity.
You pay a commission for buying a call option, called a premium; this share price is the maximum amount you can lose on a call option.
Call options can be bought for speculation or sold for income or tax purposes.
Call options can also be combined for use in spread or combination strategies.
An asset swap is used to convert cash flow characteristics in order to hedge risks from one financial instrument with undesirable cash flow characteristics to another with favorable cash flow characteristics.
The Bank Note Swap Rate (BBSW) is a short-term interest rate used as a benchmark for valuing Australian dollar derivatives and securities, primarily floating rate bonds.
Boundary conditions were used to establish the minimum and maximum possible values of call and put options prior to the introduction of binomial tree and Black-Scholes pricing models.
A collar is an options strategy that involves buying a put option down and selling a put option up, which is used to protect against large losses but also cap large profits up.