A call can refer to either a call auction or a call option.
A call option gives the buyer the right, but not the obligation, to purchase the underlying instrument at a given strike price within a given period of time.
Call options are commonly used to speculate on an up move, hedge or write covered calls.
A call auction is a type of bidding in which prices are determined by bidding for a specific time and period.
An auction call is a trading method used in illiquid markets to determine the price of securities.
A horizontal spread is a simultaneous long and short position in derivatives for the same underlying asset and strike price, but with different expiration dates.
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.
Deep-in-the-money options have strike prices that are significantly above or below the market price of the underlying asset and thus contain mostly intrinsic value.
Delta hedging is an options strategy that aims to be directional neutral by establishing compensating long and short positions in the same underlying asset.
The extrinsic value is the difference between the market price of an option, also known as its premium, and its intrinsic price, which is the difference between the strike price of the option and the price of the underlying asset.