Meaning of call option and put option


Determining this value is one of the central functions of financial mathematics. Views Read Edit View history. Energy derivative Freight derivative Inflation derivative Property derivative Weather derivative. The seller or "writer" is obligated to sell the commodity or financial instrument to the buyer if the buyer so decides. Adjustment to Call Option:

Determining this value is one of the central functions of financial mathematics. Similarly if the buyer is making loss on his position i. Unsourced material may be challenged and removed. Energy derivative Freight derivative Inflation derivative Property derivative Weather derivative.

Determining this value is one of the central functions of financial mathematics. Energy derivative Freight derivative Inflation derivative Property derivative Weather derivative. Please help improve this article by adding citations to reliable sources. The seller or "writer" is obligated to sell the commodity or financial instrument to the buyer if the buyer so decides. For call options in general, see Option law.

For call options in general, see Option law. Determining this value is one of the central functions of financial mathematics. This article needs additional citations for verification.

The term "call" comes from the fact that the owner has the right to "call the stock away" from the seller. From Wikipedia, the free encyclopedia. Articles needing additional references from October All articles needing additional references.

From Wikipedia, the free encyclopedia. Some of them are as follows:. This article is about financial options. The seller or "writer" is obligated to sell the commodity or financial instrument to the buyer if the buyer so decides.

Determining this value is one of the central functions of financial mathematics. This page was last edited on 30 Marchat Option values vary with the value of the underlying instrument over time. Moreover, the dependence of the option value to price, volatility and time is not linear — which makes the analysis even more complex.

The buyer pays a fee called a premium for this right. Views Read Edit View history. Trading options involves a constant monitoring of the option value, which is affected by the following factors:.