A call option is a financial contract that gives the buyer the right, but not the obligation, to buy an asset at a fixed price before a specific date. The seller of the call option is obligated to sell the asset if the buyer chooses to exercise the option. Call options are used by traders to profit from rising prices. If the asset's price increases above the option's strike price, the buyer can purchase it at a lower price and sell it at the market price for a profit. However, if the price does not rise, the buyer loses only the premium paid for the option. Call options are commonly used for speculation, hedging, and portfolio management. They offer high profit potential but also involve risks like premium loss if the market moves unfavorably. Understanding factors like strike price, expiration date, and market trends is essential before trading.

WIPRO

#WatchOutFor#FundamentalViews#Miscellaneous#PersonalFinance#PsychologyofMoney