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Call option
A contract that entitles the buyer/taker to buy a fixed quantity of commodity at a stipulated basis or striking price at any time up to the expiration of the option. The buyer pays a premium to the seller/grantor for this contract. A call option is bought with the expectation of a rise in prices. See Put Option.
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- Part of Speech: noun
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- Industry/Domain: Financial services
- Category: Commodity exchange
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