62 Call Options

This video introduces call options, a type of derivative that gives investors the right, but not the obligation, to buy an underlying asset at a predetermined price and date. We explore the basic mechanics of call options, including the strike price and maturity, and differentiate between American and European options. The discussion then focuses on the payoff structure for a long call position, highlighting how profit is made when the asset's price exceeds the strike price, and losses are capped at zero if the option is not exercised. Visit AxiomTutoring.com and subscribe to @AxiomTutoringCourses.