Call option - Revision history

Doug: Add link.

2024-10-02T20:45:39Z

Add link.

2024-10-02T20:45:16Z

Layout.

← Older revision		Revision as of 20:45, 2 October 2024
Line 15:		Line 15:

	:The call option protects us against the market price rising higher than $60.		:The call option protects us against the market price rising higher than $60.


	:It gives us the right to BUY 1m tonnes for $60 - IF WE CHOOSE TO DO SO.		:It gives us the right to BUY 1m tonnes for $60 - IF WE CHOOSE TO DO SO.

2021-09-10T23:19:15Z

Add link.

2020-10-29T22:56:41Z

Layout.

← Older revision		Revision as of 22:56, 29 October 2020
Line 46:		Line 46:

	===== Interest rate options =====		===== Interest rate options =====
	'Borrowers' options' hedge against a rise in interest rates.		''Borrowers' options'' hedge against a rise in interest rates.

	For options over [[forward rate agreement]]s, this is a call option.		For options over [[forward rate agreement]]s, this is a call option.


	Call options over short-term interest rate [[futures contract]]s are 'lenders' options'.		Call options over short-term interest rate [[futures contract]]s are ''lenders' options''.

	These hedge against a fall in interest rates.		These hedge against a fall in interest rates.

2020-09-10T08:47:50Z

Layout.

← Older revision		Revision as of 08:47, 10 September 2020
Line 6:		Line 6:


	'''Example'''		<span style="color:#4B0082">'''''Example: Choices'''''</span>

	:CALL options protect buyers, or users, of assets against RISES in the market price of the asset.		:CALL options protect buyers, or users, of assets against RISES in the market price of the asset.

2020-09-09T14:25:23Z

Add category.

2020-09-09T14:23:00Z

Add simple example (ICE 1920NOE081A EFFY General information 2.2).

@@ Line 4: / Line 4: @@
 The holder will only exercise the option if it is beneficial for the holder to do so, based on the difference between the strike price and the price of the underlying asset at the maturity of the option.
@@ Line 39: / Line 60: @@
 * [[Bull spread]]
 * [[Call]]
 * [[Embedded option]]
 * [[Option]]
 * [[Put option]]
 * [[Redemption]]
 * [[Underlying asset]]

2016-10-29T12:52:14Z

Layout.

← Older revision		Revision as of 12:52, 29 October 2016
Line 11:		Line 11:

	__NOTOC__		__NOTOC__
	==== Cash settlement ====		===== Cash settlement =====
	In practice many options are cash-settled by a payment, if relevant, by the writer (or seller) of the option to the holder, at the maturity date of the option.		In practice many options are cash-settled by a payment, if relevant, by the writer (or seller) of the option to the holder, at the maturity date of the option.

Line 19:		Line 19:


	==== Foreign exchange call options ====		===== Foreign exchange call options =====
	A foreign currency call option is the option to buy a specified quantity of the [[base currency]] in the currency pair, at the strike rate specified in the option.		A foreign currency call option is the option to buy a specified quantity of the [[base currency]] in the currency pair, at the strike rate specified in the option.



	==== Interest rate options ====		===== Interest rate options =====
	'Borrowers' options' hedge against a rise in interest rates.		'Borrowers' options' hedge against a rise in interest rates.

2016-10-29T12:50:43Z

Layout.

← Older revision		Revision as of 12:50, 29 October 2016
Line 1:		Line 1:
	1.		1.

	An option which gives the holder the right to <u>buy</u> a specified quantity of a physical underlying asset, such as a commodity, at the strike price specified by the option. The holder will only exercise the option if it is beneficial for the holder to do so, based on the difference between the strike price and the price of the underlying asset at the maturity of the option.		An option which gives the holder the right to <u>buy</u> a specified quantity of a physical underlying asset, such as a commodity, at the strike price specified by the option.

			The holder will only exercise the option if it is beneficial for the holder to do so, based on the difference between the strike price and the price of the underlying asset at the maturity of the option.

2016-05-11T15:37:42Z

Layout.

← Older revision		Revision as of 15:37, 11 May 2016
Line 1:		Line 1:
	#An option which gives the holder the right to <u>buy</u> a specified quantity of a physical underlying asset, such as a commodity, at the strike price specified by the option. The holder will only exercise the option if it is beneficial for the holder to do so, based on the difference between the strike price and the price of the underlying asset at the maturity of the option.		1.
	#A similar option over a non-physical underlying asset.
			An option which gives the holder the right to <u>buy</u> a specified quantity of a physical underlying asset, such as a commodity, at the strike price specified by the option. The holder will only exercise the option if it is beneficial for the holder to do so, based on the difference between the strike price and the price of the underlying asset at the maturity of the option.


			2.

			A similar option over a non-physical underlying asset.

	__NOTOC__		__NOTOC__