What is a Call Option?
Updated: Dec 20, 2021
Call Option Is a Financial
A Call Option is a financial contract that gives the buyer the right but not the obligation to buy an asset, at a price specified within the term of the contract.
The buyer of the option can exercise the option at any time before the expiration date specified in the contract.
The expiration date can vary from three months to two years for the Smart Contract Call Option Infinity.
A call option buyer benefits when the price of the underlying asset rises.
For Infinity Call Option the underlying is Infinity compared to Stable Coins Hedge
The elements of the Call Option:
Premium: The cost of purchasing a call option is called the premium.
Strike price: The price set (in Hedge) in the purchase contract to buy the underlying (in Infinity).
Expiration is the period of time during which the underlying can buy at the strike price.
The breakeven is the breakeven point of the Buy option
Purchase options only last for a limited period of time.
If the option is not exercised before the end of the contract the purchase option is finished and the value of the premium is lost.
You would buy a call option if you expect the price of the underlying asset to exceed the strike price before the contract expires.