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Simple English definitions for legal terms
call price
Read a random definition: logical-cause doctrine
A quick definition of call price:
Call price: The price at which something can be bought or sold when using a call option. It is the amount of money that the buyer of the call option pays to the seller in order to have the right to buy the underlying asset at a specific price (strike price) before a certain date (expiration date). The call price is also known as the premium.
A more thorough explanation:
Definition: The price at which a call option can be exercised, allowing the holder to buy the underlying asset at the strike price.
For example, if an investor holds a call option with a strike price of $50 and the call price is $5, they can exercise the option and buy the underlying asset for $50 plus the $5 call price, for a total of $55.
This definition explains that the call price is the additional amount an investor must pay to exercise a call option and buy the underlying asset at the strike price. The example illustrates how the call price affects the total cost of buying the asset through the option.