term1 Definition1term2 Definition2term3 Definition3
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Buyer, owner, holder
Investor who engages in opening purchase
Establishes a long position in the contract
Writer
Receives money, obligated to fulfill terms of contract upon exercise
Call
Gives the holder the right to buy 100 shares of the underlying stock from the writer, at a fixed price.
If the holder exercises the right, the writer of the option is obligated to deliver the stock.
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