A call option is a financial contract that gives the option holder the right, but not the obligation, to buy a specified quantity of an underlying asset at a set price within a specified time. Investors often buy call options when they believe that the price of the relevant underlying asset will rise.
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Jenna Lofton, MBA is a stock trading and investment expert with over a decade of experience in the financial industry. She began her career as a financial advisor on Wall Street and now helps everyday investors make smarter financial decisions through StockHitter.com.
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