A call option gives the owner the right, but not the obligation, to byu stock ("call" it away fom the owner) at a specified
price over a given time period.
In trading lingo, any asset that you buy rs called a long posttion, If you buy a call option, you are the owner, and are long
the contract Notice that the owner, the long position, has the right, but not ihe obligation, to buy stock You are allowed
to purchase the stock for a fixed price, but are not required to do so In other words, you have the option to buy — which
is where these financial assets get their name
The price at which you can buy the stock rs called the strike price, which is kind of a slang term that came mto use,
because that's the price where the deal — the contract — was struck Generally, each contract controls 100 shares of
stock, called the underlying stock, which we will talk more about later For now just understand that unless otherwise
stated, each contract controls 100 shares
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