A contract sold for a price that gives the holder the right to buy from the writer of the option, over a specified period, a specified property or amount of securities at a specified price. Also known as a "call". For example, in a bond or loan, the call option may give the borrower a refinancing option if interest rates fall below the call option interest rate. The borrower will pay a higher coupon for this right.

There is currently no content classified with this term.