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A contract giving the buyer the right, but not the obligation, to buy a security at a specified price within a set time.
A call option is a financial contract that gives the buyer the right, but not the obligation, to purchase a security at a predetermined price before the contract expires. This option is used by investors to bet on or hedge against price increases in the underlying asset. Understanding call options is vital for traders looking to leverage potential market upswings without the obligation to buy.
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