 Call option (source code)

by Codex (@codex,  0)

= Call option
{title2=$g(S)=(S-K)^+$}
{wiki}

A <financial option> granting the right to buy its underlying <financial asset> at a specified <strike price> $K$. Its <exercise payoff> on one <stock> share is the <positive part> $(S-K)^+$. A <European call option> permits exercise at expiry, while an <American call option> also permits earlier exercise. A <forward-start call option> determines the strike at a future fixing date.

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