|call and put option meaning with example||1.51||0.6||5604||15|
Put and call options explained: When purchasing call option and put option contracts, you are given the right but not the obligation to purchase the option contract at a set price. This is known as the strike price. One options contract is the equivalent of 100 shares of the stock.What is the value of a call or put option?
What is the value of a call or put option? A Call option represents the right (but not the requirement) to purchase a set number of shares of stock at a pre-determined 'strike price' before the option reaches its expiration date. A call option is purchased in hopes that the underlying stock price will rise well above the strike price, at which point you may choose to exercise the option.