Call options are agreements between a buyer and a seller that give the buyer (or option holder) the right, but not the obligation, to buy a security at a predetermined price within a specified ...

Put option: A put option gives its buyer the right, but not the obligation, to sell a stock at the strike price prior to the expiration date. When you buy a call or put option, you pay a premium ...

The motivation behind the call buyer purchasing the options lies in their belief that ABC Corporation's stock is poised for growth, and they are hoping to pick up the shares at a discount.

Issuers routinely refund 5% bonds in year 10, and the resulting savings can be significant. It is notable that although refunding is typically associated with declining interest rates, 5% bonds ...

If, three months later, the stock price is below $120, the buyer will likely acquire their stock from the market because it costs them less than calling the option with you. If it’s above $120 ...

If you are an option buyer, your option will not be automatically assigned before expiration. However, most brokers will automatically assign ITM options on the expiration date.

Call option: A call option gives its buyer the right, but not the obligation, to buy a stock at the strike price prior to the expiration date.