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A call optionoften simply labeled a "call", is a financial contract between two parties, the buyer and the seller of this type of option. The seller or "writer" is obligated to sell the commodity or financial instrument to the buyer if the buyer option decides. The buyer pays a fee called a premium for this right. The term option comes from the fact that and owner has the right to "call the stock away" from the seller. When you buy a put option, you are buying the right to buy a stock at the strike price, regardless of the stock price in the future before the expiration date.
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