Call Options

Call options are financial derivatives that provide the holder with the right, but not the duty, to purchase an underlying asset (such as stocks, commodities, or currencies) at a predefined price within a certain time frame. If the price of the underlying asset rises, the buyer of a call option benefits since they can exercise the option and acquire the item at a lower preset price. Call options offer potential upside to investors and are often utilized for speculating, hedging, and leveraging investment positions.