What Is a Call Option?
5paisa Research Team
Last Updated: 02 Apr, 2025 10:24 AM IST

Content
- Introduction
- Understanding Call Options
- How does a call option work?
- Types of Call Options
- Why buy a call option?
- Why sell a call option?
- How to Calculate Call Option Payoffs
- Purposes of Call Options
- Examples of Call Options
- The Bottom Line
- FAQs:
Introduction
Options trading is one of the most widely used types of derivatives trading. It provides the contract buyer with a right to buy or sell, as per the type of options contract. A call option gives the contract buyer the right to buy whereas a put option means the contract buyer possesses the right to sell. In this article, we will dig deep into what is a call option.
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