Call - Equity Derivatives Provision

Template:Eqderivanat The basic definition of a call option. I am entitled to buy shares from you at a pre-agreed price (Strike Price) on a pre-agreed date (i.e., a European Option) or a any time up to a pre-agreed date (i.e., an American Option).

At any time where the prevailing share price is above the Strike Price, your option is in-the-money. If the share price is below the Strike Price it is out-of-the-money. The option has time value though, so just because it it out of the money it doesn't mean it's worthless.