Call Option

byPaytm Editorial TeamLast Updated: December 12, 2025

Meaning & Definition

A call option is a financial contract that gives the buyer the right, but not the obligation, to buy an asset at a predetermined price within a specific period. It is widely used in trading and hedging.

Key Features

  • Right to buy an asset
  • Specified strike price
  • Limited risk for the buyer
  • Common in stock markets

Author

Paytm Editorial Team

The Paytm Editorial Team is a collaborative group of writers, editors, and industry experts. We're dedicated to bringing you the latest insights, news, and guides on digital payments, financial services, and the technology that's shaping India's economy. We offer easy-to-follow guides and insights to help you explore Paytm’s products, features, and services. Our goal is to provide clear, reliable, and helpful information to empower you on your financial journey.

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