Blossary – Options and Corporate Finance

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Option is basically a right that is given to the holder of where he can buy or sell an asset at a predetermined price at a predetermined date. Must be noted that it is just a right and not an obligation.

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call option

Call option is a right given to the holder of the asset where he can buy a predetermined quantity of the asset in future. This purchase has to be made at a price that is determined today. It must be ...