Futures Option > Call Options
Call Options
A call option is a contract between two parties (a 'call') that gives the buyer, the option to purchase and underlying security, normally 100 shares of a stock at a predetermined, fixed price - known as the strike price (exercise price). For this right, the buyer pays a premium.
The seller of the call has an obligation to sell the underlying security at the strike price, on or before the expiration, if he or she is assigned (exercised against).
The obligation with the Call is unlike with the futures contract where both the buyer and seller are
obligated to exercise the contract.
