Call Option

Definition:

A financial contract through which a holder has the right (but not the obligation) to force an entity to sell to the Call Option holder a specific quantity of an asset (e.g., securities, commodities, etc.) at a specific time and price. For example, an issuer may, by the exercise of a Call Option, require bondholders to redeem their bonds prior to Maturity. This is the opposite of a Put Option.

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